Gold, silver rebound after sell-off: How should investors approach now?

Gold and silver prices rebounded in domestic and global markets on Wednesday (February 18), even as analysts flagged near-term volatility amid shifting geopolitical cues and upcoming US economic data.

On the Multi Commodity Exchange (MCX), gold futures for April 2026 delivery rose ₹1,885, or 1.2%, to ₹1.53 lakh per 10 grams. Silver futures for March 5, 2026 settlement climbed ₹4,556, or 2%, to ₹2.33 lakh per kilogram.

In the international market, spot gold recovered to around $4,940 per ounce after two consecutive sessions of losses, while silver rebounded to $76 per ounce.

Fed cues, Iran talks shape sentiment

Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said traders are tracking the US Federal Open Market Committee (FOMC) meeting minutes, the US Core PCE inflation print and speeches by Federal Reserve officials for clarity on the interest rate trajectory.

Recent commentary from US policymakers has been mixed. While Fed Governor Michael Barr has favoured keeping rates steady for some time, Chicago Fed President Austan Goolsbee has indicated that rate cuts could be possible if inflation moves closer to the 2% target.

Bullion prices had come under pressure after Iran signalled a “general agreement” with the US on the guiding principles of a potential nuclear deal, easing immediate geopolitical concerns.

Asian trading volumes have also remained muted due to Lunar New Year holidays, limiting liquidity and amplifying short-term price swings.

Crude oil prices softened alongside precious metals. WTI crude slipped to a two-week low near $61.9 per barrel after comments from Iran’s foreign minister suggested progress in talks with the US.

Oil had earlier risen on concerns over temporary disruptions in the Strait of Hormuz during military drills but later pared gains as diplomatic developments reduced the risk premium.

Gold trend paused, not reversed

Aksha Kamboj, Vice President at India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, said gold has seen sharp profit-booking from recent highs, triggered by a stronger dollar and a broader sell-off in commodities.

However, she noted that gold continues to trade at elevated levels compared to previous weeks, suggesting that the broader uptrend may have paused rather than reversed.

Silver, she added, has witnessed a steeper correction due to its higher volatility and dual role as both an investment and industrial metal. The ongoing pressure reflects both investment sentiment and concerns around industrial demand, but sharp corrections often attract buying interest once markets stabilise.

How should investors approach gold and silver?

Piyush Jhunjhunwala, Founder and CEO of Stockify, said the current market cycle underlines the role of gold and silver as portfolio stabilisers.

He advised investors to avoid short-term speculation and instead adopt a systematic allocation strategy. He suggested maintaining 5–10% of total assets in gold and silver, depending on risk appetite, and investing through staggered purchases rather than lump-sum bets.

Investment avenues include gold and silver exchange-traded funds (ETFs), sovereign gold bonds, and high-quality bullion, chosen based on tax considerations and liquidity needs. Precious metals, he said, can help preserve wealth and reduce portfolio volatility during periods of economic stress.

Jewellery sector sees innovation push

Amid volatile bullion prices, activity in the broader jewellery segment continues. Pune-based DAIMANTÉ, a new-age jewellery brand from Caratix Jovella, has entered the Indian luxury jewellery market positioning itself as an AI-led, green luxury brand.

The company said it combines artificial intelligence–assisted design with traditional Indian craftsmanship. According to the brand, designs originate from AI-generated concepts inspired by nature and geometry, which artisans later refine and handcraft.

Note To Readers

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.