New Delhi, India — February 17, 2026
Gold and silver prices declined sharply in India’s physical bullion market on Tuesday as weak global cues, reduced liquidity in Asian trading, and cautious investor sentiment pressured precious metals. According to data released by the All India Sarafa Association, silver plunged ₹5,000 per kilogram while gold dropped ₹2,200 per 10 grams in the Delhi market.
Sharp Decline in Domestic Bullion Prices
Silver prices fell about 2 percent to ₹2,45,000 per kg, down from ₹2,50,000 in the previous session. Gold of 99.9% purity slipped 1.4 percent to ₹1,57,000 per 10 grams compared with ₹1,59,200 earlier.
Market analysts attributed the drop to weak global signals and subdued demand conditions, which reduced buying momentum in precious metals.
China Holidays Reduce Market Participation
Analysts said the ongoing Lunar New Year holidays in China played a major role. As one of the world’s largest gold consumers, China’s temporary absence from trading activity lowered global participation, increasing selling pressure and limiting liquidity across Asian markets.
Internationally, gold slipped about 1.04 percent to $4,938.70 per ounce, while silver declined roughly 2.15 percent to $74.96 per ounce during trading.
Geopolitics and Fed Expectations Influence Sentiment
Investors also adopted a cautious stance ahead of diplomatic talks between the United States and Iran scheduled in Geneva. Market participants often shift toward safer positioning before major geopolitical developments.
Additionally, softer inflation data in the U.S. strengthened expectations that the Federal Reserve may cut interest rates later this year. Rate-cut expectations can influence gold demand dynamics because lower rates typically reduce opportunity costs for holding non-yielding assets like bullion.
Short-Term Outlook for Precious Metals
Commodity experts say bullion prices may remain range-bound in the near term as traders await key macroeconomic indicators, including U.S. employment data and developments in global geopolitical negotiations. These factors are expected to shape risk sentiment and determine safe-haven demand.
For now, analysts believe decisive directional movement in gold and silver will depend on whether speculative participation returns to the market.
