MCX gold hovers near ₹1.43 lakh per 10 grams; silver below ₹2.50 lakh per kg

Domestic bullion prices came under heavy pressure on Monday (February 2), tracking a sharp sell-off in global precious metals after US President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair and CME raised margin requirements on metal futures.

On MCX, gold futures fell 3.22% to ₹1.43 lakh per 10 grams, down ₹4,780 per 10 grams from the previous close. Despite the drop, prices remain near historic highs after a strong rally through 2025 and early 2026, suggesting the move is being viewed as a correction rather than a trend reversal.

Physical gold prices also eased across major Indian cities, though 24K gold continued to trade above ₹15,000 per gram in key metros, with Chennai quoting the highest rates.

Silver faced steeper losses. In the spot market, silver was quoted at ₹2.50 lakh per kg, down ₹15,990 or 6%. MCX silver futures slid even more, falling ₹17,153 or 6.46% to ₹2.48 lakh per kg amid heavy selling.

The sharp correction follows an exceptional rally in silver over the past year, during which it significantly outperformed gold. Despite the fall, domestic silver prices remain elevated compared with historical averages.

Global drivers behind the fall

Analysts attributed the decline to a combination of factors:

• Kevin Warsh’s nomination, seen as relatively hawkish on rates


• A stronger U.S. dollar


• Higher U.S. Treasury yields


• Hotter-than-expected US producer inflation (PPI)

Higher CME margin requirements that forced some traders to liquidate positions

Rahul Kalantri, VP–Commodities at Mehta Equities, said investor sentiment turned negative after the Warsh nomination and was reinforced by stronger macro data and dollar strength. He also noted that the Union Budget brought no change in gold import duty, which removed some domestic premium in Indian bullion prices.

-With agencies inputs