Silver tanks Rs 15,000 on MCX, gold slips below Rs 1.5 lakh/10 gm. Should investors buy this dip?

Gold and silver futures opened sharply lower on the MCX on Friday, extending losses for a second consecutive session, as a global selloff in tech equities and a stronger U.S. dollar erased most of the gains made during a brief rebound earlier this week.

In today’s session, MCX silver futures for March 5, plunged 6%, up Rs 14,628 to Rs 2,29,187 per kg. Gold futures for April 2, delivery slipped Rs 2,675, or 2%, to Rs 1,49,396 per 10 grams.

In international markets, spot gold rose 0.4% to $4,790.80 per ounce as of 0224 GMT, though the metal remained down 1.4% for the week. U.S. gold futures for April delivery declined 1.7% to $4,806.50 per ounce.


Spot silver was broadly steady at $71.32 an ounce after plunging 19.1% in the previous session. Earlier in the day, the metal fell as much as 10%, slipping below the $65 level and hitting a more than one-and-a-half-month low.

MCX margins hiked

Just a day after a 4.5% margin hike on silver futures and 1% on gold futures, effective February 5. A further additional margin of 2.5% on silver futures and 2% on gold futures has come into effect today, over and above the margins already in place. As a result, the total additional margin will stand at 7% for silver futures and 3% for gold futures from February 6 onward.

Higher margins typically increase the capital that traders must maintain, which often leads to a reduction in speculative positions and leveraged trades. In the near term, this can trigger profit booking or forced unwinding — especially in highly volatile contracts like silver — potentially putting downward pressure on prices or increasing intraday volatility.

How should you trade gold and silver?

Manoj Kumar Jain of Prithvi Finmart said markets are closely watching the outcome of the US–Iran nuclear deal talks, which could set the direction for precious metals. He noted that both gold and silver are witnessing very high price volatility, though silver may hold support near $65 per troy ounce, while gold could maintain support around $4,440 per troy ounce on a closing basis this week.

He added that gold and silver prices are expected to remain volatile in today’s session amid fluctuations in the dollar index, the partial shutdown in the U.S., and ongoing geopolitical tensions. For the day, gold has support at $4,770–$4,640 and resistance at $4,955–$5,050 per troy ounce, while silver has support at $71.20–$64.00 and resistance at $84.40–$88.80 per troy ounce.

On the MCX, gold is seen having support at 150,500–147,700 and resistance at 154,200–155,800, while silver has support at 225,000–212,000 and resistance at 254,000–264,000. Jain suggested staying away from precious metals markets until stability returns.

Gold rates in physical markets:

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,13,352/8 grams while pure gold (24 carat) prices stand at Rs 1,23,648/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,13,232/8 grams while pure gold (24 carat) prices stand at Rs 1,23,528/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai are Rs 1,14,552 per 8 grams, while pure gold (24 carat) prices are Rs 1,24,968 per 8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,13,232/8 grams while pure gold (24 carat) prices stand at Rs 1,23,528/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)