Silver prices staged a sharp ₹5,500 rebound on Friday after suffering a brutal 10% crash in just two sessions, while gold also bounced ₹2,000 per 10 grams, triggering renewed buying interest across precious metals.
The sharp reversal comes as bargain hunting kicked in after panic-driven selling, with traders reassessing macro cues, dollar strength, and shifting interest-rate expectations. This move matters because silver volatility is now dictating short-term sentiment across commodity trades, while gold’s rebound signals a potential pause in the recent risk-off rotation.
What Happened Today
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Silver prices rebounded ₹5,500/kg after collapsing nearly 10% over two trading sessions.
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Gold prices climbed ₹2,000/10 g, recovering part of recent losses.
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The earlier crash was triggered by:
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Stronger-than-expected US jobs data
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A sharp rise in the US dollar
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Delayed rate-cut expectations by the US Federal Reserve
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The sharp fall forced heavy liquidation in leveraged positions, especially in silver, known for its high volatility and speculative participation.
Market Reaction Snapshot
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Silver MCX: +₹5,500 rebound after 10% fall
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Gold MCX: +₹2,000 bounce
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Dollar Index: Cooling from recent highs
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Commodity Volatility: Extremely elevated
The bounce was led by short covering and bargain hunting, especially in silver futures and ETFs.
Why This Matters for Markets
Despite the sharp rebound, this is not yet a confirmed trend reversal.
Silver’s violent swing highlights:
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Fragile sentiment
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Heavy speculative positioning
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Extreme sensitivity to US macro data
The rebound suggests panic selling has paused, but conviction buying is still missing, meaning prices may remain range-bound and volatile.
For gold, the recovery indicates:
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Safe-haven demand remains intact
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Traders are reluctant to aggressively short gold ahead of US inflation and Fed policy clarity
Key Signal:
This is stabilisation, not trend reversal—volatility remains the dominant theme.
What Traders Should Watch Next
Key Technical Levels
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Silver Support: ₹2.20L – ₹2.25L
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Silver Resistance: ₹2.55L – ₹2.60L
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Gold Support: ₹1.50L
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Gold Resistance: ₹1.58L – ₹1.60L
Key Triggers Ahead
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US CPI inflation data
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Fed rate path commentary
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Dollar Index direction
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Global bond yield movement
Risk Factors
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Any upside surprise in US inflation
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Renewed spike in US bond yields
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Dollar breakout above resistance
TradingView
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Silver: High-risk zone → suitable only for short-term tactical trades
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Gold: Safer hedge → buy-on-dips strategy preferred
Strategic Takeaway for Investors
Silver’s violent rebound after a brutal crash shows speculative excess is still unwinding. Until volatility compresses, position sizing and strict risk management are critical.
Gold remains structurally supported, but directional conviction will only emerge after macro clarity.
Bottom Line:
This rebound is a pause in panic, not the end of volatility.
FAQs
1. Why did silver rebound ₹5,500 after a sharp 10% crash?
Silver rebounded due to aggressive short-covering and bargain hunting after panic selling triggered by strong US jobs data and a rising dollar index.
2. Is the recent silver rebound a confirmed trend reversal?
No. The rebound signals temporary stabilisation, not a trend reversal. Volatility remains high, and prices may stay range-bound until macro clarity improves.
3. Why did gold prices jump ₹2,000 today?
Gold rose as safe-haven demand returned amid cooling dollar strength and expectations that US interest rates may not rise further in the near term.
4. What key levels should traders track in silver and gold?
Silver support lies at ₹2.20L–₹2.25L, with resistance near ₹2.55L–₹2.60L. Gold support is at ₹1.50L, while resistance stands at ₹1.58L–₹1.60L.
5. What are the biggest risks for silver and gold prices now?
Upside surprises in US inflation, a sharp dollar rally, and rising bond yields could trigger fresh selling pressure in precious metals.
6. Is silver riskier than gold for traders?
Yes. Silver is significantly more volatile than gold and is better suited for short-term tactical trades, while gold remains a safer hedge asset.
7. What should investors do amid current precious metal volatility?
Traders should focus on strict risk management, trade smaller positions, and avoid aggressive leverage until volatility compresses and trend clarity improves.
