**Market Brief: Precious Metals Rebound (February 3, 2026)** **Gold and Silver Stage Massive Recovery** Gold and silver prices staged a sharp recovery on Tuesday, snapping a historic losing streak that erased trillions in market value late last week. Domestic futures on the MCX witnessed aggressive buying as short-covering and value hunting emerged following the panic sell-off. **Key Market Figures** * **Gold (MCX):** Surged significantly, reclaiming the **₹1,53,000** per 10g level, up from intraday lows. The metal has bounced back over 3–5% in a single session. * **Silver (MCX):** Witnessed extreme volatility, rallying approximately **13%** to trade near **₹2,67,000 per kg** after hitting a lower circuit near ₹2.45 lakh earlier. * **Global Spot:** Spot gold climbed back toward **$4,800–$4,900 per ounce**, while silver regained the **$80** mark. **Drivers of the Rebound** * **Technical Oversold Conditions:** After falling nearly 9–12% (Gold) and over 30% (Silver) in just three days, technical indicators signaled extreme oversold levels, triggering automatic buy orders and bargain hunting. * **Fed Policy Speculation:** Markets are recalibrating after the panic triggered by the nomination of **Kevin Warsh** as Federal Reserve Chair. While initially viewed as a hawkish signal that boosted the dollar, the selling pressure is now viewed by analysts as a "positioning reset" rather than a fundamental trend reversal. * **Short Covering:** Traders rushing to close bearish positions (short covering) accelerated the upside momentum, particularly in the silver market which had seen record margin-induced liquidation. **Market Sentiment & Outlook** Volatility remains the dominant theme. While today’s move offers relief, analysts caution that the rebound is currently a technical correction within a volatile structure. Market participants are closely watching upcoming US economic data and further clarity on the Federal Reserve's policy trajectory to determine if this floor will hold. The **Gold-Silver ratio** remains widened, reflecting silver's underperformance during the recent crash. **Summary:** A violent reset has occurred. Precious metals have defended critical support zones, but the market remains highly sensitive to US dollar movements and margin adjustments.