Gold and silver prices in India witnessed a strong rebound on Tuesday even as global risk appetite improved following India’s major trade agreements with the United States and the European Union. Contrary to typical market behaviour, precious metals climbed sharply due to technical factors, short-covering, and extreme volatility in global commodity markets.

On the Multi Commodity Exchange (MCX), silver prices jumped over 7% to around ₹2.53 lakh per kg, while gold gained more than 3% to trade near ₹1.49 lakh per 10 grams. Physical market prices tracked futures closely across major cities including Delhi, Mumbai, Chennai and Kolkata.

Market experts attributed the rally to a technical correction after a sharp sell-off triggered by higher margin requirements and changing expectations around US monetary policy. Analysts stressed that long-term fundamentals such as geopolitical uncertainty, central bank buying and macroeconomic risks remain supportive for gold and silver.

Despite near-term volatility, both metals continue to hold key support levels, with analysts advising investors to closely track currency movements, US Federal Reserve signals and global market trends in the coming sessions.