MCX Silver Falls 6% While Gold Declines 2% in Volatile Trade

Gold and silver futures extended their decline on the Multi Commodity Exchange (MCX), tracking global market weakness and a firmer US dollar. 

The sell-off followed recent volatility in international equities and came alongside tighter margin requirements imposed by the exchange. 

These developments have influenced trading activity in bullion contracts and added to short-term price pressure.

Decline in MCX Gold and Silver Futures

Silver futures for March delivery recorded a sharp fall during the session, declining by around 6% to trade near ₹2,29,187 per kilogram. 

Gold futures for April delivery also moved lower, slipping close to 2% to around ₹1,49,396 per 10 grams, falling below the ₹1.5 lakh mark.

Global Bullion Market Trends

In overseas markets, spot gold edged higher in early trade, although it remained lower on a weekly basis. US gold futures continued to face pressure. Silver prices stabilised after significant losses in the previous session, having earlier dropped to levels not seen in over a month amid heightened volatility.

Impact of Rising MCX Margin Requirements

MCX has further increased margin requirements for bullion contracts. After an earlier hike effective February 5, additional margins have come into force from February 6. The total additional margin now stands at 7% for silver futures and 3% for gold futures, over and above existing requirements.

How Higher Margins Affect Trading Activity

Higher margins increase the funds traders must maintain to hold positions. This often results in reduced speculative activity and the unwinding of leveraged trades, particularly in volatile contracts such as silver. In the near term, these changes can contribute to price pressure and wider intraday movements.

Gold Prices in Physical Markets

Gold prices in the physical market showed regional variations across major cities:

Read More: Silver ETFs in Focus as Global Silver Prices Witness Record One-Day Fall Ahead of Budget 2026.

Conclusion

The recent decline in gold and silver prices reflects a combination of global market factors and tighter trading conditions on MCX. With elevated volatility and higher margins in place, bullion prices may continue to respond to global cues, currency movements and changes in market participation in the near term.

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