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Gold and silver prices surged sharply on Monday, February 9 as the US dollar slipped to its weakest level in nearly a week, triggering fresh buying interest in precious metals. According to a Motilal Oswal report, persistent safe-haven demand, expectations of further US Federal Reserve rate cuts, and ongoing geopolitical uncertainty have combined to support bullion prices at elevated levels. Investors are also closely watching key US labour market data due later this week, which could offer clearer direction on interest rates and global risk sentiment.

Precious metals extended gains after the US dollar index dropped to its lowest level since February 4, making gold and silver cheaper for overseas buyers. A weaker dollar typically boosts demand for commodities priced in greenbacks, and Monday’s move sparked a strong upward reaction across bullion markets. Motilal Oswal said investors are clearly leaning towards safe-haven assets as worries around global growth, interest rates and geopolitics refuse to ease.

Both metals saw strong intraday gains on the Multi Commodity Exchange, pointing to solid domestic buying interest.

As of 3:30 pm on February 9:

Gold February futures stayed comfortably above the Rs 1,57,000 mark. Silver, meanwhile, was far more volatile — it briefly shot up to nearly Rs 2,64,885 per kg before some profit-taking kicked in.

According to Motilal Oswal, ongoing geopolitical uncertainty continues to support prices. While indirect talks between US and Iranian officials in Oman have raised hopes of diplomacy, tensions are far from settled, especially after Iran reaffirmed its position on uranium enrichment.

Expectations of easier monetary policy in the United States have also provided strong support.

San Francisco Federal Reserve President Mary Daly said one or two more interest rate cuts may be needed to counter weakness in the labour market. Lower interest rates typically increase the appeal of non-yielding assets like gold, as the opportunity cost of holding bullion declines.

US Treasury Secretary Scott Bessent also suggested the Fed may not move quickly to shrink its balance sheet, reinforcing expectations of accommodative financial conditions.

Adding to the bullish momentum, China’s central bank continued its steady gold accumulation.

Official data showed China’s gold reserves rose to 74.19 million fine troy ounces by the end of January, up from 74.15 million the previous month. This marks the 15th consecutive month of net gold purchases, signalling sustained central bank confidence in bullion as a long-term reserve asset.

While gold continues to benefit from safe-haven flows, Motilal Oswal said silver has additional structural support from industrial demand and ongoing supply deficits.

However, analysts cautioned that silver’s sharp surge could lead to a phase of consolidation at higher levels, as traders rebalance positions after the recent rally.

Motilal Oswal has flagged a few price zones that could matter in the near term as volatility stays high.

Gold

Silver

These levels are likely to stay in focus as markets brace for fresh cues from the US.

Investors are now awaiting the delayed US January nonfarm payrolls report, which was postponed due to a partial government shutdown.