Gold and silver prices witnessed sharp swings on Thursday, underscoring heightened volatility in the bullion market as investors reacted to global cues, currency movements, and post-Budget adjustments. While gold showed signs of stabilisation after recent selling pressure, silver continued to remain under stress, particularly in the futures segment.
On the Multi Commodity Exchange (MCX), gold slipped below the ₹1.5 lakh mark per 10 grams during intraday trade, while silver registered a steep fall of over ₹16,000 per kilogram, rattling traders and retail buyers alike.
MCX Gold Prices: Marginal Recovery After Budget Sell-Off
Gold futures on MCX were trading at ₹1,50,269 per 10 grams on February 5, down ₹2,777 or 1.82 per cent from the previous close. The metal moved in a wide range during the session, touching a high of ₹1,51,948 and a low of ₹1,48,455, highlighting the fragile sentiment in the market.
Market participants noted that gold had seen a sharp sell-off following the Union Budget, but buying interest emerged at lower levels, offering limited support. Analysts said bargain hunting by long-term investors helped prevent a deeper fall, even as global uncertainty continued to weigh on prices.
In the futures segment, the April 2026 gold contract opened at ₹1,51,493 and closed at ₹1,53,390 per 10 grams. The contract touched an intraday high of ₹1,60,755 and a low of ₹1,53,046, reflecting heightened speculative activity. The last traded price stood at ₹1,58,420, marking a marginal daily gain of ₹344 or 0.22 per cent.
Silver Takes a Harder Hit
Silver, however, bore the brunt of selling pressure. On MCX, silver futures earlier in the day traded at ₹2,52,719 per kg, down ₹16,131 or nearly 6 per cent. During the session, prices fluctuated between a high of ₹2,58,096 and a low of ₹2,52,719.
In the equity segment, silver-linked stocks were also under pressure, with prices falling nearly 15 per cent intraday before recovering slightly. NSE volumes stood at over 22 lakh shares by mid-morning, indicating heavy churn.
Despite the slump in futures, physical silver prices showed signs of recovery. Retail silver rates climbed to ₹3,20,100 per kg, rebounding from recent lows of around ₹2,80,000 per kg. However, analysts cautioned that the disconnect between physical and futures markets suggests continued uncertainty.
Physical Gold Prices Firm Up
In contrast to MCX futures, physical gold prices edged higher across major cities, supported by jeweller demand and wedding-season buying.
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24-carat gold was priced at ₹1,59,440 per 10 grams, up ₹5,510
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22-carat gold stood at ₹1,46,150 per 10 grams, up ₹5,050
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18-carat gold was quoted at ₹1,19,580 per 10 grams, up ₹4,130
City-Wise Gold Rates (February 5, 2026)
Mumbai / Kolkata / Bengaluru
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24K: ₹1,59,440
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22K: ₹1,46,150
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18K: ₹1,19,580
Delhi
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24K: ₹1,59,590
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22K: ₹1,46,300
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18K: ₹1,19,730
Chennai
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24K: ₹1,62,560
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22K: ₹1,49,000
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18K: ₹1,27,500
Prices in southern markets remained higher due to local taxes and logistics costs.
Silver Rates by Quantity
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1 gram: ₹254
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10 grams: ₹2,536
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100 grams: ₹25,359
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1 ounce: ₹7,189
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1 tola: ₹2,958
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1 kg: ₹3,20,100
Other variants:
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925 Sterling Silver: ₹2,34,571 per kg
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900 Coin Silver: ₹2,28,231 per kg
Global Factors Driving Volatility
Internationally, silver prices fell more than 16 per cent, slipping below $75 an ounce. The sharp correction followed a strong rebound in the US Dollar Index, which climbed back toward the 98 mark after hitting four-year lows in late January.
A stronger dollar typically pressures precious metals, making them more expensive for non-dollar buyers. Rising US bond yields and expectations of tighter monetary conditions also added to the downward pressure.
Gold, meanwhile, managed to hold relatively steady in global markets, supported by safe-haven demand amid geopolitical uncertainty, though upside remained capped due to dollar strength.
Outlook: Caution Advised
Market experts expect near-term volatility to persist in both gold and silver as global macroeconomic signals remain mixed. While gold may continue to find support at lower levels, silver is likely to see exaggerated price swings due to speculative positioning and thinner liquidity.
Investors are being advised to adopt a cautious, staggered buying approach rather than chasing sharp intraday moves. Analysts also suggest closely tracking currency movements, US inflation data, and central bank cues for clearer direction.
For now, the bullion market remains firmly in “wait-and-watch” mode, with price discovery still unfolding after recent record highs and sharp corrections.
