Gold futures continued their decline for a third consecutive session on February 2, as significant profit-taking occurred following a vigorous rally that had driven both metals to new record highs in the previous month. Today’s decline has resulted in the white metal losing Rs 1.66 lakh, equivalent to 41.5%, over the course of just three sessions. MCX Silver futures set to expire on March 5, 2026, decreased by Rs 31,878, representing a decline of 12%, bringing the price to Rs 2,33,874 per kilogram. In the latest trading session, gold futures for delivery on April 2, 2026, experienced a decline of Rs 8,865, representing a 6% decrease, bringing the price to Rs 1,38,888 per 10 grams. The decision by CME Group to increase margin requirements on Comex gold and silver futures starting Monday is expected to contribute to short-term volatility in domestic bullion markets, including on the MCX. Rising margins worldwide elevate the expense of maintaining leveraged positions, frequently compelling speculative traders to reduce their exposure, thereby potentially applying additional pressure on global prices.
Given that MCX gold and silver predominantly follow global benchmarks, any weakness or significant fluctuations originating from Comex are generally reflected in Indian prices, particularly during the early trading sessions. Although the margin increase does not directly modify MCX regulations, it may suppress risk appetite, result in more pronounced intraday fluctuations, and hinder dip-buying until price stability is reestablished, with currency fluctuations additionally affecting the rupee’s impact. In the international market, spot gold experienced a decline of 3.3%, priced at $4,703.27 per ounce as of 0259, following a drop exceeding 5% earlier in the session, reaching its lowest point in over two weeks. Bullion reached an unprecedented peak of $5,594.82 on Thursday. In contrast, spot silver increased by 1.6% to $85.98 per ounce, although it continues to be significantly below its historical peak of $121.64 reached on Thursday.
Manoj Kumar Jain noted that precious metals are experiencing significant volatility, with silver potentially finding support around $65 per troy ounce, while gold is expected to maintain the $4,440 level on a closing basis this week. He anticipates that gold and silver prices will exhibit volatility in the short term, influenced by variations in the dollar index and persistent geopolitical tensions. Jain indicates that gold is supported in the range of $4,680–4,620 and encounters resistance at $4,800–4,910 per troy ounce. In contrast, silver shows support at $67–74 and resistance at $84–88.80 per troy ounce during the current session.
On the MCX, gold exhibits support levels at Rs 1,44,400-1,37,700, with resistance positioned at Rs 1,48,800-1,54,000. In contrast, silver shows support at Rs 2,55,500-2,44,000 and resistance at Rs 2,78,000-2,92,000. He recommended that investors hold off on establishing new positions in bullion markets until there is a clearer indication of stability.