Last Updated:February 03, 2026, 11:09 IST

Silver prices staged a sharp rebound on Tuesday after an intense phase of liquidation that followed the abrupt unwinding of a record-setting rally

Silver Rates Surge Today

Silver Rates Today: Silver prices staged a sharp rebound on Tuesday after an intense phase of liquidation that followed the abrupt unwinding of a record-setting rally. The earlier sell-off had pulled prices down more than 46% from their peak in just three sessions, highlighting the extreme volatility in the precious metals space. Gold prices also recovered alongside silver.

On the MCX, silver hit the 6% upper circuit at Rs 2,50,436 per kg on February 3, while MCX gold climbed 3% to Rs 1,48,310 per 10 grams.

A key macro catalyst emerged after US President Donald Trump announced a trade agreement with India. The deal lowers US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and easing certain trade barriers. The development added a fresh geopolitical layer to already jittery commodity markets.

Gold mirrored silver’s recovery in global trade. Spot gold rose as much as 4.2% to move above $4,855 an ounce after sliding 4.8% in the previous session. That decline had extended Friday’s slump, the steepest in over a decade.

Earlier, on January 30, spot gold had tumbled nearly 10% in its sharpest single-day fall since 1983, dragging prices back below the $5,000-an-ounce mark that had been crossed only days before and erasing a sizable portion of the year’s gains.

The rebound extended beyond gold and silver. Spot platinum advanced 3% to $2,183.64 an ounce after touching a record $2,918.80 on January 26, while palladium rose 2.7% to $1,765.75, joining the broader recovery across precious metals.

What drove the rebound after the crash?

Domestic sentiment got a lift from the India–US trade deal, while investors also reassessed geopolitical risks, currency movements and the outlook for US monetary leadership. Strong buying from Chinese retail investors ahead of the Lunar New Year further supported demand, although China’s markets are set to shut for over a week from February 16, temporarily sidelining a key source of consumption.

Traders are also watching developments involving Iran after Trump signalled that talks on a potential new nuclear agreement could begin soon. Any diplomatic progress could reduce gold’s safe-haven appeal and cap gains.

The earlier sell-off in bullion was initially triggered by Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, which strengthened the US dollar and pressured metals. The slide intensified after CME Group raised margin requirements for precious metals futures, forcing leveraged traders to unwind positions quickly. A stronger dollar combined with higher trading costs led to a sharp liquidity squeeze, accelerating the fall.

Will the rally sustain?

Hareesh V, Head of Commodity Research at Geojit Investments, said longer-term drivers such as geopolitical tensions, central bank buying and macro uncertainty remain supportive for precious metals.

He noted that the previous correction was magnified by extremely overbought conditions after gold and silver had surged to record highs, with silver rallying more than 60% in a month and gold over 20%. Profit-booking snowballed into panic selling as liquidity thinned and volatility spiked.

“The violent drop was more of a technical correction than a deterioration in core fundamentals,” he said, suggesting that the broader structural support for the metals remains intact.

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NEW DELHI/ WASHINGTON: After months of bruising trade tensions, India and the US on Monday announced a bilateral trade deal that will see Washington slash additional tariffs on Indian imports to 18%, from the current 50%, making it more competitive for textiles, leather and seafood exporters.While PM Narendra Modi, in a post on X, which followed US President Donald Trump’s announcement on Truth Social, said he had a wonderful conversation with “dear friend” Trump and thanked him on behalf of 1.4 billion people for the reduced tariff of 18% on Indian goods, he did not mention the trade deal at all in his post on X that followed Trump’s “wonderful” announcement.

PM Modi and Trump

Modi also did not comment on Trump’s claim that in their conversation the PM had agreed to stop buying Russian oil and purchase much more energy from the US, and potentially Venezuela. Trump had said Modi had agreed to stop buying Russian oil and to buy much more from the US — $500 billion of energy, technology and farm products — a step that the President claimed would help end the war in Ukraine.According to the American President, Modi also agreed to bring down tariff and non-tariff barriers against the US to zero. A US embassy spokesperson confirmed that the final tariff now on India is 18%, down from the earlier 50%. This is a better deal for India than countries such Vietnam, Bangladesh, Indonesia, South Korea and China, which face higher tariffs. The Trump-Modi conversation coincided with the visit of EAM S Jaishankar to US for a critical minerals ministerial that will be chaired by Secretary of State Marco Rubio this week.The announcement came six days after India and the EU announced the completion of talks for a comprehensive trade agreement.Trump leadership vitalfor global peace: ModiThe deal had drawn sharp comments from some members of the Trump administration, including attacks on the EU.In his X post, PM said, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation”. He added that Trump’s leadership was vital for global peace, stability, and prosperity. India fully supports his efforts for peace. Modi said he was looking forward to working closely with Trump to take the partnership to unprecedented heights.Apart from reciprocal tariff, Trump had announced an additional 25% tariff on India for its purchase of Russian oil.Trump said the US had agreed to the trade deal with India out of friendship and respect for Modi, and at the latter’s request. “Our amazing relationship with India will be even stronger going forward. PM Modi and I are two people that GET THINGS DONE, something that cannot be said for mos,” he added.Trump in his social media post also said that it was an honour to speak with Modi whom he described as “one of my greatest friends and, a Powerful and Respected Leader of his Country”.

Ties set to get boost

While the US had acknowledged in past few months that India had cut down its Russian purchase, it had not eliminated the additional tariff.Trump also said, “We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the US and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”Following the announcement last week of the successful conclusion of FTA negotiations with EU, India had suggested that India and US might be close to finalising the trade agreement they have been discussing since Feb last year.Trump’s disclosure of the trade deal was preceded by two India-related posts a few hours before, one of which featured him and Modi on a magazine cover with the caption “The Mover and the Shaker”. Another post featured New Delhi’s India Gate, which Trump called “India’s beautiful Triumphal Arch” and said, “Ours will be the greatest of them all!” — referring to a similar monument he wants to build in Washington DC.