Silver rebounds, gold firms as softer US data fuels expectations of deeper Fed rate cuts

Silver prices rebounded sharply in international markets on Wednesday, rising more than 1.5% to about $82.4 per ounce, while gold prices also firmed as investors sought safe-haven assets amid growing economic uncertainty. Spot gold gained 0.3% to $5,038.73 per ounce, while US gold futures for April delivery climbed 0.6% to $5,060.60 per ounce.

The recovery in silver followed a steep decline of over 3% in the previous session and reflected renewed buying interest as markets digested fresh macroeconomic signals from the United States. Latest data showed a slowdown in consumer spending and rising concerns over economic growth, prompting investors to reassess the Federal Reserve’s policy outlook. Markets are now pricing in as many as three interest rate cuts by the Fed this year, up from expectations of two earlier. The shift toward a more accommodative stance has supported demand for precious metals, which tend to benefit from lower interest rates and a softer dollar.

Jigar Trivedi of IndusInd Securities said gold prices strengthened above the $5,040-per-ounce level on expectations that the Federal Reserve may turn more dovish following weaker US data. He added that continued central bank buying and persistent geopolitical tensions have also provided a firm underlying support to bullion prices.

The global rally was reflected in domestic markets as well. Physical gold prices across major Indian cities tracked international cues. In Hyderabad, 22-carat gold was quoted at Rs 1,16,448 per 8 grammes, while 24-carat gold stood at Rs 1,27,032. Delhi prices were slightly higher at Rs 1,16,568 for 22-carat and Rs 1,27,152 for 24-carat gold per 8 grammes. Mumbai saw standard gold at Rs 1,14,448 and pure gold at Rs 1,27,033, while Chennai reported Rs 1,16,632 and Rs 1,27,240 for 22- and 24-carat gold respectively.

Market participants expect the positive momentum in bullion to persist in the near term. Trivedi noted that MCX Gold April futures could remain elevated toward Rs 1,58,000 per 10 grammes, supported by a constructive international trend and growing expectations of monetary easing. He also highlighted silver’s strength, saying MCX Silver March futures may appreciate toward Rs 2,65,000 per kg as global sentiment remains supportive.

Gaurav Garg, Research Analyst at Lemonn Markets, said: "Gold and silver prices rallied on 11 February, supported by positive global cues and renewed safe-haven demand amid expectations of a more accommodative US Federal Reserve stance. MCX gold rose nearly 1%, reclaiming levels above Rs 1.58 lakh per 10 grams, while spot gold hovered near a two-week high. Silver outperformed with around a 3% gain, crossing Rs 2.60 lakh/kg on MCX as spot prices climbed near $83/oz. Investor sentiment strengthened after softer US economic data raised hopes of rate cuts and signalled slowing growth. Additional support came from continued central bank buying and lingering geopolitical tensions. In the near term, precious metals are expected to remain volatile as markets track upcoming US jobs and inflation data for policy direction."

Gold–silver ratio 

Alongside price action, the gold–silver ratio has drawn close attention from investors due to its sharp swings in recent weeks. The ratio, which measures how many ounces of silver are needed to buy one ounce of gold, fell to a multi-year low of around 44–46 by the end of January 2026 as silver prices surged parabolically, briefly crossing the $100-per-ounce mark.

That extreme proved unsustainable. A sharp correction in silver prices in early February triggered a swift reversal in the ratio, which rebounded toward the 60 level. As of February 11, 2026, the gold–silver ratio is trading above 61, signalling a shift in relative performance between the two metals.

The rebound in the ratio has coincided with a renewed upswing in bullion prices following a sell-off at the start of the month. Since their February 2 lows, gold prices have climbed more than 15%, while silver has rebounded around 16%. However, silver has remained significantly more volatile, underscored by a sharp 26% single-session plunge on January 30.

Trivedi said silver is no longer deeply undervalued relative to gold. “A gold–silver ratio near 60 suggests the discount at which silver trades versus gold has narrowed significantly,” he said. According to him, this indicates that silver’s phase of sharp outperformance may be maturing. While silver prices could continue to rise, the pace of gains may moderate, leaving investors prepared for continued two-way volatility despite an overall bullish undertone.