New Delhi, India — February 6, 2026
India’s bullion market witnessed a sharp sell-off on Thursday, with gold and silver prices recording steep losses amid global market volatility and a stronger US dollar. Silver led the decline, crashing by as much as ₹30,300, while gold prices slipped by ₹4,500 across major domestic markets.
According to the All India Sarafa Association, silver prices in the national capital plunged 10.16% to ₹2.68 lakh per kilogram, driven by aggressive selling pressure in global markets. Gold prices also weakened sharply, falling nearly 3% to ₹1.6 lakh per 10 grams.
Two-Day Rally Snapped as Selling Pressure Returns
Market participants said the sharp fall ended a brief two-day rally in precious metals. Manish Verma, owner of Shree Shyam Jewellers, said gold and silver came under renewed selling pressure due to rising volatility and easing safe-haven demand.
“Precious metals faced fresh selling as the US dollar strengthened and Federal Reserve officials adopted a hawkish tone. This reduced the appeal of gold and silver as defensive assets,” Verma said.
MCX Prices Slide Steeply
On the Multi Commodity Exchange of India (MCX), silver prices for March delivery fell by ₹26,850, or nearly 10%, to ₹2.42 lakh per kilogram, compared with ₹2.68 lakh per kg in the previous session.
Gold futures for April delivery also declined sharply. Prices dropped ₹2,310, or 1.51%, settling at ₹1,50,736 per 10 grams, down from the previous close of ₹1,53,046 per 10 grams.
Global Markets Add to Pressure
The sell-off was not limited to domestic markets. International bullion prices also saw heavy losses, with declines of up to 13% reported during the session.
Spot silver prices plunged $11.94, or 13.54%, to $76.26 per ounce, while spot gold prices fell $137.32, or 2.77%, to $4,826.99 per ounce.
Strong Dollar Weighs on Precious Metals
Analysts said the rise in the US dollar intensified pressure on commodity prices. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.25% to 97.86, making dollar-denominated commodities more expensive for overseas buyers.
Hawkish comments from officials of the Federal Reserve, coupled with reduced demand for safe-haven assets, further dampened investor sentiment toward precious metals.
