Silver and gold prices surged sharply on Friday, January 9, with silver futures locking in a 4% upper circuit and gold rising nearly 1% on the Multi Commodity Exchange (MCX), as global and domestic factors aligned to fuel a strong rebound across precious metals.
Why silver prices spiked sharply
Silver futures on Multi Commodity Exchange jumped to the upper circuit after global silver prices climbed more than 1.5%, crossing $78 per ounce. The rally was driven primarily by weaker-than-expected U.S. job data, which reinforced expectations that the U.S. Federal Reserve could move toward interest rate cuts later this year.
Lower interest rate expectations reduce real yields, making non-yielding assets like silver more attractive. The move was further amplified by short covering and fresh long positions, especially after selling pressure linked to annual commodity index rebalancing began to fade.
Thin liquidity conditions also magnified the upside, following two sessions of sharp liquidation earlier in the week.
Gold gains on rate-cut expectations
Gold futures on MCX also moved higher, tracking global bullion prices that were supported by the same macro trigger — soft U.S. payroll data. December non-farm payrolls rose by just 50,000, while the unemployment rate eased to 4.4%, reinforcing the view of a cooling labour market.
This data strengthened bets on a more accommodative U.S. monetary policy, which typically supports gold by easing pressure from higher real yields. Global uncertainty around geopolitics and policy developments added further support to safe-haven demand.
Global cues add momentum
Beyond U.S. data, geopolitical risks in regions such as East Asia and Latin America provided secondary support to precious metals. While these factors were not the primary trigger, they helped sustain buying interest once prices started moving higher.
Big picture
The sharp move in silver and steady gains in gold underline how macroeconomic signals, rate expectations, and positioning dynamics can quickly shift sentiment in the commodities market. With investors increasingly pricing in lower global interest rates, precious metals have regained momentum after recent volatility.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity markets are subject to risk and price volatility. Always conduct your own research before making investment decisions.