In futures trading on Thursday (February 5, 2026), silver and gold prices ended a two-day rally and plunged by as much as 10%, due to weakness in international markets and a stronger US dollar.
On Multi Commodity Exchange (MCX), silver for March delivery fell by Rs 26,850 or 10% to Rs 242,000 per kg. In the last session, the white metal had settled at ₹2,68,850 per kg.
Similarly, gold for April contract fell by ₹2,310 (1.51%) to ₹1,50,736 per 10 grams compared to Wednesday’s (February 4, 2026) closing level of ₹1,53,046 per 10 grams.
“Gold and silver erased recent gains and erased a two-day rally as selling pressure and heightened volatility returned to precious metals markets,” said Renisha Chinani, head of research at Augmont.
In international markets, silver and gold futures reflected the downward trend seen in domestic trading.
On the Comex, the white metal for March delivery fell $8.85, or 10.48%, to $75.55 an ounce. In intraday trading, the metal fell more than 13% to a low of $73.38 an ounce.
“Silver plunged as much as 14% to around $73 an ounce, ending a two-day rally, as the precious metal faced fresh selling pressure and increased volatility. Despite expectations that bull buyers might intervene at lower levels, the decline in silver and other metals looks set to continue after failing to sustain the recent rally,” said Jigar Trivedi, senior research analyst at IndusInd Securities.
Comex gold for April delivery also fell $80, or 1.61%, in overseas trading to $4,870.9 per ounce. In the previous session, the yellow metal once again crossed the $5,000 threshold, reaching a nearly two-week high of $5,113.9 per ounce before settling at $4,950.8 per ounce.
Trivedi blamed the decline on a stronger dollar on hawkish signals from the Federal Reserve and expectations that the pace of rate cuts would slow.
“Investors were weighing the impact of Kevin Warsh’s nomination as Fed chairman, noting his desire to shrink the Fed’s balance sheet and expectations that he would be less aggressive in cutting interest rates,” he added.
Augmont’s Chainani added that China’s gold exchange-traded funds saw record daily outflows, with nearly $1 billion out of major bullion-backed funds following a sharp price correction that shook investor confidence.
On the geopolitical front, traders remained cautious ahead of Iran-US talks scheduled for Friday (February 6, 2026). US President Donald Trump also held wide-ranging consultations with Chinese President Xi Jinping ahead of his proposed April visit, following the latter’s recent virtual meeting with Russian President Vladimir Putin.
“In the short term, gold prices are likely to remain weak and consolidate in the range of $4,550-5,100 (Rs 1.4 million-1.6 million per 10 grams). Silver, on the other hand, is also expected to remain weak and consolidate in the range of $74-91 (Rs 2.35 million-2.85 million per kg),” Chinani said.
issued – February 5, 2026 1:08pm IST