Gold and Silver Prices Plummet: Market Update for February 5, 2026
On February 5, 2026, gold and silver prices faced a dramatic decline on the Multi Commodity Exchange, following a period of significant gains. This article explores the latest market trends, local price variations, and the reasons behind this sudden crash. Experts weigh in on the implications of this downturn and what it could mean for future pricing. Stay informed about the fluctuations in precious metals and the factors influencing these changes.
| Feb 5, 2026, 10:53 IST
Market Fluctuations in Precious Metals
The prices of gold and silver continue to experience significant fluctuations. Following a sharp increase over the past two days, a sudden drop was observed on February 5, 2026 (Thursday) on the Multi Commodity Exchange (MCX), leading to what is being termed a 'gold-silver price crash.' As the market opened, both precious metals saw a steep decline, causing a stir among investors.
Latest MCX Prices (February 5, 2026 Morning Trading):
- Gold (24 Carat, April Delivery): Approximately ₹1,48,455 per 10 grams (a decrease of about ₹4,591 or 3% from the previous close). Some reports indicated trading around ₹1,50,000-₹1,51,000.
- Silver (March Delivery): ₹2,44,654 per kilogram (a significant drop of ₹24,196 or nearly 9-10% from the last close). Updates suggest it dipped below ₹2.50 lakh, having previously been at ₹2.68 lakh.
Local Prices in Various Cities (Estimated for 24 Carat Gold per 10 grams):
- Delhi: Approximately ₹1,54,000-₹1,59,000
- Mumbai: ₹1,54,430
- Chennai/Bengaluru: Similar levels of decline
- 22 Carat Gold: Between ₹1,41,000-₹1,46,000
Key Reasons for the Crash:
- In the past two days (February 3-4), there was a rapid recovery in gold and silver prices following a significant drop the previous week. This surge prompted profit booking.
- International market volatility: Fluctuations in gold and silver prices on COMEX, coupled with a stronger US dollar and signals related to Federal Reserve policies, have increased pressure.
- Silver experienced particularly heavy declines (some reports indicate drops of 6-16%), as it is considered more volatile.
Expert Opinions and Future Outlook:
This decline is viewed as a technical correction, as profit booking is common after recent high levels (gold reaching ₹1.93 lakh and silver ₹4.20 lakh). Some experts believe that prices may rise in the long term, especially due to central bank purchases and global uncertainties. However, short-term volatility is likely to persist.