Gold and Silver Prices Rebound on Feb 13: Spot Gold Climbed 1%

Gold and silver prices saw a recovery on Friday (February 13), rebounding from one-week lows hit in the previous session as investors stepped in to buy following a sharp selloff driven by robust US labour market data.

Spot gold climbed 1% to $4,966.83 per ounce by 0127 GMT, after tumbling more than 3% on Thursday (February 12) and briefly slipping below the key $5,000-per-ounce mark. US gold futures for April delivery advanced 0.7% to $4,985.40 per ounce.

Silver led the gains, with spot prices rising 2.1% to $76.76 per ounce, bouncing back after an 11% drop earlier in the week.

What Triggered the Fall, and the Rebound

The initial decline followed stronger-than-anticipated US employment figures, which dampened hopes of an early interest rate cut by the Federal Reserve.

January’s data showed nonfarm payrolls increased by 130,000 jobs, while the unemployment rate eased to 4.3%. Initial jobless claims fell to 227,000 in the week ended February 7. Together, the figures reinforced expectations that policymakers may keep interest rates higher for longer.

Elevated interest rates typically weigh on non-yielding assets like gold, as they increase the opportunity cost of holding bullion. A stronger US dollar can also pressure precious metals by making them more expensive for buyers using other currencies. The dollar was largely steady against major peers on Thursday, holding firm amid mixed economic signals.

Investors are now turning their attention to upcoming US inflation data, which could offer clearer guidance on the Federal Reserve’s next policy move.

India: Volatility Continues

In India, precious metals remain volatile. The gold–silver ratio is still above 60, highlighting the divergence between gold’s safe-haven demand and silver’s sensitivity to industrial trends.

On the Multi Commodity Exchange (MCX), short-term price swings of 500–1,000 basis points are common when global bond yields or the US dollar fluctuate sharply.

Also Read: Mutual Fund AUM Crosses ₹80 Lakh Crore in 10 Years on Strong SIP and Retail Participation

Growing preference for regulated ETFs

With global uncertainties lingering and prices hovering near multi-year highs, Indian investors are increasingly shifting toward regulated exchange-traded funds (ETFs) rather than holding physical gold or silver, favouring transparency, liquidity and ease of allocation.

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