Gold and silver exchange-traded funds (ETFs) rebounded on Thursday, February 19, following gains in underlying bullion prices amid renewed geopolitical tensions, supportive global cues, and the withdrawal of additional margins on futures contracts.
Gold futures for April delivery edged higher to ₹1,56,050 per 10 gram on the Multi Commodity Exchange of India (MCX) during the morning session, while silver futures for March delivery rose to ₹2,44,901 per kilogram.
Reflecting the strength in futures, gold and silver ETFs saw sharp gains. By around 11:15 AM, gold ETFs such as Motilal Oswal, ICICI Prudential, HDFC, Birla Sun Life, Groww, SBI, Zerodha, and UTI MF Gold ETFs gained over 2 per cent each.
Among silver ETFs,
Groww Silver,
Nippon India Silver,
HDFC Silver, UTI Silver,
Axis Silver, 360 ONE Silver, Motilal Oswal Silver, DSP Silver, Mirae Asset Silver, SBI Silver, Aditya Birla Sun Life Silver, and
ICICI Prudential Silver ETFs rose in the range of 3 to 4 per cent.
Margin withdrawal boosts sentiment
The rally followed announcements by MCX and National Stock Exchange (NSE) Clearing regarding the withdrawal of additional margins on gold and silver futures contracts, effective February 19.
MCX said it would remove the extra 3 per cent margin on all gold futures contracts and 7 per cent on all silver futures contracts. NSE Clearing issued a similar circular, advising members to adjust their positions accordingly. The move is expected to lower margin obligations for traders and improve liquidity in bullion contracts.
CHECK Stock Market LIVE Updates Global cues support precious metals
Internationally, Comex gold rebounded sharply in the previous session, closing nearly 2 per cent higher as investors assessed the latest Federal Open Market Committee (FOMC) minutes.
According to Axis Securities, the minutes revealed a divide among policymakers, with some open to rate cuts if disinflation continues, while others preferred maintaining or even tightening policy should inflation remain persistent.
The brokerage noted that the mixed tone in the minutes revived expectations of eventual policy easing, which supported non-yielding assets such as gold. Comex silver surged over 5 per cent in the same session, supported by strong bargain buying at lower levels after recent weakness.
The softer dollar bias and shifting rate expectations helped precious metals recoup earlier losses.
However, analysts raised caution that volatility may persist. Aamir Makda, commodity & currency analyst at Choice Broking, noted that the week-long closure of major hubs such as the Shanghai Gold Exchange during the Lunar New Year creates a “liquidity vacuum” in the global bullion market.
“As the world’s largest physical buyers go offline, trading volumes thin out, often resulting in exaggerated price volatility and wider bid-ask spreads,” Makda said. He added that silver is particularly vulnerable during this period due to the temporary slowdown in Chinese industrial activity, advising traders to remain cautious in the near term.
Technical outlook
From a technical perspective, the broader trend remains constructive despite recent corrections.
Ponmudi R, founder and chief executive officer of Enrich Money, said MCX Gold futures are trading in the ₹1,50,000-₹1,60,000 range after correcting from all-time highs near ₹1,80,000-₹1,81,000. While short-term consolidation continues, the broader uptrend remains intact, with strong support at ₹1,45,000-₹1,50,000. A sustained hold above this level and a breakout past ₹1,60,800 could push prices toward ₹1,65,000-₹1,75,000, keeping the medium-term outlook positive despite volatility.
According to Ponmudi, MCX Silver futures are trading in the ₹2,30,000-₹2,50,000 zone following a sharp pullback from record highs around ₹4,20,000. The long-term bullish trend remains, though short-term bearish pressure persists. Strong support lies at ₹2,25,000-₹2,35,000, and holding above this could revive momentum toward ₹3,00,000-₹3,25,000. Dips to support offer accumulation opportunities, while a break below could extend the correction, he added.
 "Gold, silver ETFs rebound as previous metals rise; global cues add support")
