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New Delhi: Silver and gold prices extended their rally for the second consecutive day in futures trade on Wednesday, following a steep correction last week, amid strong gains in the global markets and a weak US dollar.
According to the Multi-Commodity Exchange (MCX), silver for the March delivery jumped by Rs 16,853, or 6.29 per cent, to Rs 2,84,868 per kilogram.
The white metal snapped its three-day losing streak on Tuesday, soaring Rs 31,754, or 13.4 per cent, to close at Rs 2,68,015 per kg.
Gold futures also registered robust gains on the commodities bourse. The yellow metal for the April contract appreciated by Rs 5,868, or 3.82 per cent, to Rs 1,59,677 per 10 grams.
In the previous session, the metal had jumped Rs 9,818, or nearly 7 per cent, to settle at Rs 1,53,809 per 10 grams.
"Gold and silver rebounded sharply after the steep selloff of the past few sessions, supported by a weaker dollar, though gains in domestic markets were capped by a softer USD/ INR," Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.
He added that investor interest returned after gold corrected nearly 15 per cent over the last three trading days, prompting value buying and short covering.
In the international market, Comex silver futures for March delivery gained USD 6.73, or 8.08 per cent, to USD 90.03 per ounce, while gold for the April contract climbed USD 169.5, or 3.43 per cent, to USD 5,104.5 per ounce.
"Gold jumped to trade above USD 5,000, while silver surged over 8 per cent, outperforming as a broader risk-on tone lifted sentiment across markets," Modi said.
Renisha Chainani, Head - Research at Augmont, said, " Gold has recovered nearly 15 per cent from recent lows, while silver has rebounded about 25 per cent, as forced liquidations eased and dip buyers stepped in to capitalise on sharply lower prices".
She added that geopolitical tensions also lent support to safe-haven buying after the US Navy shot down an Iranian drone in the Arabian Sea, even as investors awaited a fresh round of nuclear talks scheduled for Friday.
Meanwhile, US President Donald Trump signed a spending deal restoring funding for key federal agencies, ending the partial government shutdown and extending Homeland Security funding until February 13, buying time for further negotiations.
"The US Nonfarm Payrolls report will not be released on Friday; however, the ADP private-sector employment data due for release later in the day will offer key insights into labour market conditions," Chainani said.