Gold, Silver Prices Crash 7-9% as Historic Rally Sparks Profit-Taking

MCX gold February futures fell 7.12 per cent to Rs 1,39,000 per 10 grams around 10 am on an intraday basis. Meanwhile, MCX silver March futures dipped 9 per cent to Rs 2,65,652 per kg.

CME Group raised margin requirements on Comex gold and silver futures after the metal prices saw steep declines, which raised investor caution.

Further, the US dollar strengthened, and domestic investors expected a customs duty cut in Budget 2026, which fuelled the fall in precious metals.

International markets saw spot gold prices heading for their steepest daily fall since 1983, while silver is set for its worst day on record.

CME Group said on Friday that margins for gold futures under the non-heightened risk profile will be raised to 8 per cent of the underlying contract value from the current 6 per cent. For positions under the heightened risk profile, the new margins will be 8.8 per cent, up from 6.6 per cent.

Higher margins will lead to traders locking more money upfront to hold the same futures position, which reduces speculative interests.

Analysts said that MCX Gold futures have witnessed a sharp rejection from the Rs 1,80,000-Rs 1,81,000 zone, followed by an aggressive breakdown, confirming short-term trend exhaustion.

However, they maintained that the broader long-term trend of the yellow metal was bullish.

The breakdown in MCX silver invalidates the steep bullish channel, and signals panic unwinding of leveraged long positions, they said, adding that momentum indicators have flipped from extreme overbought to oversold within a very short span, highlighting structural instability rather than healthy correction.

For silver, a critical support zone lies at Rs 2,60,000-Rs 2,55,000 zone, they said, adding that a pullback toward Rs 3,00,000-Rs 3,10,000 zone is expected to attract selling pressure.

The trend remains bearish biased in the short term, with volatility expected to stay elevated, analysts noted.

- IANS