Gold and Silver Prices: Gold and silver futures witnessed a sharp decline in domestic and international markets on February 5, 2026, snapping their two-day rebound as a strong U.S. dollar and Federal Reserve concerns weighed heavily on investor sentiment. The sudden selloff led to significant losses in precious metal prices on the Multi Commodity Exchange (MCX).
Silver prices saw the steepest fall, plunging nearly 10%. Silver for March delivery dropped by ₹26,850 to settle at ₹2,42,000 per kilogram, compared to the previous closing price of ₹2,68,850 per kg. The decline mirrored global trends where precious metals faced pressure due to currency strength and cautious market outlooks.
Gold futures also slipped, though at a relatively moderate pace. The April gold contract fell by ₹2,310, or 1.51%, trading at ₹1,50,736 per 10 grams, down from ₹1,53,046 recorded a day earlier. Analysts attribute the fall to rising bond yields and uncertainty surrounding future interest rate decisions by the U.S. Federal Reserve.
Market experts note that a stronger dollar typically reduces the appeal of non-yielding assets like gold and silver, prompting investors to shift toward safer currency-backed instruments. The volatility indicates cautious trading behavior as global financial markets await clearer economic signals.
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