Gold Prices Surge: India-US Deal Fuels Strong Rally on 3 February 2026

Indian gold markets witnessed a dramatic turnaround on Tuesday, 3rd February 2026, as prices of the yellow metal staged a significant rebound across major cities. After a period of decline, gold surged by over 6% in a single day, marking one of its biggest daily gains since 2008. This sharp rally was primarily fueled by positive news surrounding a newly announced India-US trade deal, which eased lingering tariff tensions and injected fresh optimism into the market.

The momentum was palpable on the Multi Commodity Exchange (MCX), where gold contracts rebounded strongly, crossing the ₹1.5 lakh mark and nearing ₹1.53 lakh per 10 grams. This robust performance was echoed in physical markets across the country, with prices rising notably in key centers like Mumbai, Delhi, Chennai, Kolkata, and Ahmedabad. However, Bengaluru presented a contrasting picture, with gold and silver prices reportedly sliding even as the broader MCX witnessed a sharp rally. The precious metal's resurgence wasn't limited to gold alone; silver also experienced an exceptional day, with MCX Silver Futures jumping an impressive 14% and Silver ETFs skyrocketing, even outpacing gold in some segments.

Beyond the domestic trade agreement, global cues also contributed to gold's upward trajectory. Uncertainty surrounding a potential US shutdown played a role, driving investors towards safe-haven assets. Analysts suggest that the significant influx of investor capital came after a recent steep selloff, indicating that many saw the lower prices as an opportune moment to buy the dip. The easing of India-US tariff tensions, in particular, has been highlighted as a critical catalyst, raising questions among market watchers about the long-term trajectory of both gold and silver prices.

For Indian investors and jewelry shoppers, today's rebound presents a crucial juncture. While the sharp gains suggest a potential end to the recent downturn, the question remains: is the worst truly over for the yellow metal? Experts are now offering predictions for February-April 2026, advising investors to closely monitor global economic developments and the sustained impact of the India-US trade deal. For those who have been waiting, this rebound might signal a renewed confidence in gold's store-of-value appeal, making it an important time to reassess investment strategies and consider if this is indeed the best time to buy the dip.