Precious Metals Snapshot: Geopolitics Sparks Recovery **Feb 4, 2026** Gold and silver futures have staged a powerful rebound, extending gains for a second consecutive session. The rally is primarily fueled by renewed geopolitical friction after US forces reportedly downed an Iranian drone, reigniting demand for safe-haven assets. Market Movements * **Silver Surge:** MCX Silver futures rallied aggressively, jumping over **5%** to trade near **₹2,91,500 per kg**. In global markets, spot silver reclaimed the **$87 per ounce** level. * **Gold Gains:** Yellow metal prices rose approximately **3-4%**, with MCX Gold approaching the **₹1,63,500 per 10g** mark. Spot gold has successfully climbed back above the psychological **$5,000 per ounce** threshold. Key Drivers * **Geopolitical Trigger:** The shooting down of an Iranian drone near an aircraft carrier in the Arabian Sea has injected fresh fear into the markets, reversing the sharp sell-off seen earlier in the week. * **Dollar Weakness:** The US Dollar Index (DXY) softened to trade around **97.3**, providing a tailwind for dollar-denominated commodities. * **Bargain Buying:** Investors seized the opportunity to buy the dip following the massive correction earlier this week, where prices had plummeted nearly **20%** from their late-January record highs. Analyst Outlook Market experts anticipate continued high volatility. While the current move is a strong relief rally, the broader market remains sensitive to US Federal Reserve policy shifts—specifically the recent nomination of Kevin Warsh as Fed Chair—and ongoing developments in the Middle East. Summary Bullion markets are back in the green as immediate war risks outweigh monetary policy concerns. Traders should remain alert to rapid price swings as headline risk dominates the narrative.