Gold and silver prices witnessed a sharp and sudden selloff on Monday, snapping a historic rally and rattling investors across domestic and global markets.
On the Multi Commodity Exchange (MCX), gold slipped more than ₹6,000 per 10 grams from its record high, while silver plunged by an unprecedented ₹31,500 per kilogram, marking the steepest single-day correction in its trading history.
What Happened?
Both metals opened higher and touched fresh all-time highs during early trade. However, the momentum faded quickly as heavy profit booking, global volatility, and higher margin requirements triggered aggressive selling in the latter half of the session.
Key Price Levels (MCX)
24-carat Gold (Feb 2026)
Day’s high: ₹1,40,444 per 10 grams
Closing price: ₹1,34,887
Intraday fall from peak: ~₹6,100
Silver (Mar 2026)
Day’s high: ₹2,54,174 per kg
Closing price: ~₹2,23,900
Fall from record high: ~₹31,500
Why Did Gold and Silver Fall?
1. Massive Profit Booking
After a parabolic rally—silver up over 180% in 2025—investors rushed to lock in gains once prices hit extreme levels.
2. Global Market Pressure
International silver prices briefly crossed $80 per ounce but failed to sustain, sliding sharply toward the $70 zone. The global correction spilled into Indian markets.
3. Easing Geopolitical Tensions
Signs of diplomatic progress in the Russia–Ukraine conflict reduced demand for safe-haven assets like gold and silver.
4. Margin Hikes Trigger Forced Selling
CME Group raised margin requirements on silver futures, forcing leveraged traders to either add cash or exit positions, accelerating the selloff.
5. Technical Correction After Record Rally
Both metals were trading far above key moving averages. Analysts say such sharp rallies often invite swift and deep corrections.
Will Prices Fall Further?
Market experts warn that near-term volatility may continue, especially if global pressure persists or the US dollar strengthens further. However, long-term fundamentals such as industrial demand for silver and central bank buying of gold remain supportive.
