Why Gold and Silver Prices Slide in India on February 17?

Gold and silver prices in India fell on Monday, February 16, as global markets remained subdued and investors adopted a cautious stance. On the Multi Commodity Exchange (MCX), April gold futures dropped ₹589, or 0.38%, settling at ₹1.55 lakh per 10 grams. Meanwhile, March silver futures slipped ₹3,630, or 1.49%, to ₹2.40 lakh per kilogram.

Global Market Pressure

Overseas, Comex gold for April delivery declined 0.48% to $5,021.99 per ounce, while Comex silver for March delivery fell 1.45% to $76.83 per ounce in New York. Analysts attributed the dip to a correction after last week’s rally, which was fueled by softer-than-expected US Consumer Price Index (CPI) inflation data.

Thin Trading Activity

Trading volumes were thin, with US markets closed for Presidents Day and Chinese markets shut for the Lunar New Year. Limited participation amplified price swings, preventing sustained momentum in bullion markets.

Geopolitical Developments Provide Partial Support

Gold found some support from safe-haven demand amid reports that the USS Gerald R Ford was deployed to the Middle East following stalled Iran nuclear talks. Analysts noted that heightened geopolitical tensions continue to influence investor behaviour toward precious metals.

Profit-Booking After Recent Gains

Investors booked profits after last week’s strong rally. Gold had briefly crossed the $5,000-per-ounce mark, while silver jumped nearly 3% on Friday, February 13, before retreating on Monday.

Focus on US Monetary Policy

Markets are keeping a close eye on upcoming US Personal Consumption Expenditures (PCE) data and minutes from the Federal Open Market Committee (FOMC) meeting. While softer US inflation had previously raised expectations of potential rate cuts—which typically support gold and silver—market adjustments have moderated gains this week.

Physical Demand and Regional Trends

Despite global weakness, Chinese physical demand for gold remains robust, with Shanghai warehouse stocks surpassing 100 tonnes. In India, domestic silver demand remained subdued, contributing to the fall in MCX prices.

Also Read: Gold Rate: Dubai vs India Gold Prices on February 17, 2026

Outlook

Analysts expect gold to hover around ₹1.55 lakh per 10 grams, while silver could test levels near ₹2.35 lakh per kilogram if global trends remain weak. Volatility is likely to persist until fresh US economic data provides a clearer direction.

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