Silver and gold prices snapped a two-day rebound and declined sharply up to 10% in the futures trade on Thursday (February 5, 2026) amid weak trends in the international markets and a strong U.S. dollar.
On the Multi Commodity Exchange (MCX), silver for March delivery dropped by ₹26,850, or 10%, to ₹2,42,000 per kilogram. In the previous session, the white metal had settled at ₹2,68,850 per kg.
Similarly, gold for April contract depreciated by ₹2,310, or 1.51%, to ₹1,50,736 per 10 grams as compared with Wednesday’s (February 4, 2026) closing level of ₹1,53,046 per 10 grams.
“Gold and silver erased recent gains, snapping a two-day rebound as renewed selling pressure and heightened volatility returned to precious-metal markets,” Renisha Chainani, Head of Research at Augmont, said.
In the international market, silver and gold futures mirrored the downward movement seen in the domestic trade.
On the Comex, the white metal for March delivery dropped by $8.85, or 10.48%, to $75.55 per ounce. During the intraday trade, it plunged over 13% to hit a low of $73.38 per ounce.
“Silver plunged as much as 14% to around $73 per ounce, snapping a two-day rebound as precious metals faced renewed selling pressure and heightened volatility. Despite hopes that dip buyers might step in at lower levels, the decline in silver and other metals appears set to continue after the recent rebound failed to hold,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Comex gold for April delivery also fell $80, or 1.61%, to $4,870.9 per ounce in overseas trade. In the previous session, the yellow metal had crossed the USD 5,000 threshold again, touching a near two-week high of $5,113.9 per ounce, before settling at $4,950.8 per ounce.
Mr. Trivedi attributed the selloff to a stronger U.S. dollar, driven by hawkish signals from the Federal Reserve and expectations of a slower pace of rate cuts.
“Investors considered the implications of Kevin Warsh’s nomination as Fed chair, noting his preference for a smaller Fed balance sheet and expectations that he would be less aggressive on rate reductions,” he added.
Chainani of Augmont added that China’s gold exchange traded funds witnessed record daily outflows, with nearly $1 billion withdrawn from major bullion-backed funds following the sharp price correction that unsettled investor confidence.
On the geopolitical front, traders remained cautious ahead of Iran-U.S. talks scheduled for Friday (February 6, 2026). U.S. President Donald Trump also held wide-ranging discussions with Chinese President Xi Jinping ahead of a proposed April visit, following Mr. Xi’s recent virtual meeting with Russian Vladimir Putin.
“In the short term, gold prices are likely to remain weak and consolidate within the $4,550-$5,100 range (₹1.4-1.6 lakh per 10 grams), while silver is also expected to trade weak and consolidate in the $74-91 range (₹2.35-2.85 lakh per kilogram),” Mr. Chainani said.
Published – February 05, 2026 01:08 pm IST
