Gold prices rise 3%, silver adds over Rs 21,000 — Should you buy now, or wait?

Gold and silver prices continued to scale lifetime highs on Wednesday, lifted by safe have demand amid ongoing geopolitical tensions. The precious metals continued to reach record levels on the Multi-Commodity Exchange(MCX) as the white metal nears the Rs 4 lakh mark and gold jumps 3%.The momentum comes just ahead of the US Federal Reserve’s policy announcement, which is being closely watched by global investors. Gold futures expiring on February 5, 2026, climbed sharply in early trade, rising Rs 4,800, or 3%, to Rs 1,62,429 per 10 grams. Silver futures for March 5, 2026, delivery posted even steeper gains, jumping Rs 21,400, or 6%, to Rs 3,77,655 per kg, marking fresh lifetime highs for both contracts on the MCX. Global markets followed the strength seen domestically. International gold prices crossed the $5,200-an-ounce mark on Wednesday, touching an all-time high as the US dollar weakened to a near four-year low amid persistent geopolitical concerns. The rally unfolded ahead of the US Federal Reserve’s monetary policy decision later in the day. Spot silver rose 0.6% to $113.63 an ounce, after having touched a record high of $117.69 on Monday.

Silver has already gained nearly 60% so far this year. Market participants are now awaiting cues from the Federal Reserve, with any indication of a pause or easing in interest rates expected to influence broader sentiment. Lower interest rates generally weigh on bond yields, making non-yielding assets such as gold and silver more attractive to investors. Strong safe-haven buying driven by heightened global uncertainty continues to support precious metals, Manoj Kumar Jain of Prithvi Finmart told ET.

He noted that the dollar index has seen a sharp decline, slipping to nearly a four-year low. A rebound in the Japanese yen and concerns over the possible dumping of US Treasuries by European countries amid the Greenland issue are adding further pressure on the dollar.

While the overall environment remains supportive for gold and silver, price action is expected to remain highly volatile. Despite the volatility, silver is expected to hold a crucial support level at $98 per troy ounce, while gold is likely to sustain support near $4,980 per troy ounce on a closing basis during the week. In the near term, both metals are expected to witness sharp fluctuations, tracking movements in the dollar index, the outcome of the Fed policy meeting and ongoing geopolitical developments. Gold has support in the $5,084–$5,055 range and faces resistance between $5,174 and $5,220 per troy ounce. Silver is supported at $102.40–$98 and encounters resistance in the $112–$118 range, Manoj added. On the MCX, gold is expected to find support at Rs 1,56,600–Rs 1,55,000, while resistance is placed at Rs 1,59,800–Rs 1,62,000.

Silver has support at Rs 3,50,000–Rs 3,44,000 and resistance between Rs 3,65,000 and Rs 3,78,000. The trading strategy is to buy the yellow metal on dips as long as it holds Rs 1,56,000 on a closing basis, targeting Rs 1,65,000. Silver can also be accumulated on falls while it sustains Rs 3,44,000 on a closing basis, with an upside target of Rs 3,70,000–Rs 3,84,000.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)