A partial easing of global geopolitical tensions, especially signs of progress on nuclear issues in the Geneva talks between the US and Iran, has boosted market sentiment.

Gold rebounds after a major decline

Silver Price Predictions: After hitting record highs in recent days, silver prices fell sharply, but on Wednesday, February 18th, they saw another strong surge. Silver rose by ₹8,316, or 3.63 percent, to reach ₹237,099 per kilogram on the Multi-Commodity Exchange of India (MCX). Following this surge, questions have arisen in the market about whether this is a sustainable trend or merely a short-term recovery.

Why the sharp rise in silver?

Silver's surge comes at a time when demand for safe-haven metals has recently softened. A partial easing of global geopolitical tensions, particularly signs of progress on nuclear issues during talks between the US and Iran in Geneva, has buoyed market sentiment. Despite this, global uncertainty has not fully dissipated, keeping precious metal prices at elevated levels.

Demand for gold ETFs in China and India remains strong, and India also saw an increase in gold imports in January. Gold also jumped by Rs 1,848 (about 1.22 percent) to Rs 1,53,266 per 10 grams on the MCX.

Analysts believe that investors should adopt a balanced strategy for now. Price volatility is likely to persist in the short term. The sustainability of the recovery in gold and silver after the recent decline will largely depend on global economic cues, dollar movements, interest rates, and geopolitical developments in the coming weeks. Overall, silver has certainly rebounded, but caution and a long-term strategy remain crucial for investors.

What do experts say?

Experts believe that if global geopolitical tensions ease, speculative demand for safe-haven metals like gold and silver could decline, putting pressure on prices. However, they also say that physical demand, such as jewelry, industrial uses (particularly silver), and bar-coin purchases for investment, will continue to provide a strong support for prices.

In major consumer markets like India and China, physical purchases often increase during downturns due to festivals, wedding seasons, and investment demand, which prevents prices from falling too far. This means that even if international developments cause short-term volatility, strong physical demand can provide a support zone for gold and silver prices. For investors, this means that it may be premature to form a completely bearish sentiment even during downturns.