Gold & Silver Rates Crash: MCX Gold Drops 24%, Silver Falls 42% From Peak; BUY After No Change In Customs Duty

Gold rates in India crashed significantly on February 2nd, extending their pullbacks from their record highs. The case was similar for silver rates in India. Currently, MCX gold has dropped by around 24% and MCX silver nosedived by 42% from their peak levels. What is noteworthy is that 10 grams gold is struggling to hold around Rs 1.40 lakh, while silver is on the path to nearly halve as it struggles around Rs 2.5 lakh per 1Kg.

Why Gold & Silver Prices Are Falling?

This is performance is due to sharp decline in appetite for safe haven assets on a global level.

Spot gold has plunged by over 4% and is below $4,700 per ounce, while spot silver declined nearly 7% to below $80 per ounce.

The latest reason to topple precious metals is the last week's market rout which was fuelled after US President Donald Trump nominated Kevin Warsh to become the chair of US Federal Reserve. Warsh is known for more hawkish stance, which makes dollar attractive and gold less compelling.

Both gold and silver prices have seen their steepest fall in more than a decade. As per Trading Economics data, US President Donald Trump plans to nominate Kevin Warsh, who is viewed as a more hawkish choice, to lead the Federal Reserve. Profit-taking also emerged after a relentless rally that had pushed gold to record highs. That advance was fueled by strong central bank demand and the so-called debasement trade, as investors rotated into physical assets from currencies and bonds amid concerns over surging government debt.

Despite this, the data also explained that heightened geopolitical and economic uncertainty, along with worries about the Fed's independence, reinforced gold's safe-haven appeal. Momentum buying further amplified gains, with a wave of purchases from Chinese speculators adding froth to the rally and exacerbating the crash as they took profits.

MCX Gold Price:

At the time of writing, MCX gold futures with April 2026 expiry, nosedived by Rs 1,605 or 1.09% to trade at Rs 1,46,148 per 10 grams.

Meanwhile, MCX gold price who is set to expire on February 5, 2026, plunged by 3.3% to hit an intraday low of Rs 1,37,453 per 10 grams. This futures is down by nearly 24% from its peak of Rs 1,80,779 per 10 grams.

MCX Silver Price:

MCX silver with March 2026 expiry, has crashed by around 42% from its peak of Rs 4,20,048 per 1Kg as of now. It currently trades at Rs 2,51,294 per 1Kg, down by Rs 14,358 or 5.4%.

"Gold and silver prices fell sharply from their record highs after the U.S. President selected Kevin Warsh as the next Fed Chairman. Investors reacted negatively because Warsh is considered more aggressive on interest-rate policy than earlier leaders. The decline was further supported by a stronger U.S. dollar, higher Treasury yields, and upbeat U.S. inflation data (PPI and core PPI)," said Rahul Kalantri, VP Commodities, Mehta Equities.

In India, the expert added that no change in import duty in the Union Budget removed the domestic premium in bullion.

Gold & Silver Prices Market:

According to Kalantri, bullion markets remain highly volatile, but silver could find support near $68, while gold may hold around $4,510 this week. Gold has support at $4655-4575, while resistance is at $4840-4950. Silver has support at $74.8-69.75 while resistance is at $88.15-93.80. In INR gold has support at Rs1,,39,650-1,36,310 while resistance at Rs1,48,850-1,50,950. Silver has support at Rs2,48,810, 2,37,170, while resistance is at Rs2,78,810, 2,95,470.

Should You Buy/Sell Gold & Silver?

According to analysts at Nirmal Bang, gold prices are expected to pull back to 150000-153000. One can buy at 145000 with a stop loss of 143500 for the target at 148000-150000. One can also sell from 156000, maintaining a stop loss of 158500.

For silver, these analysts said, silver prices are expected to pullback till 285000-290000. One can buy at 250000 with a stop loss of 230000 for the target at 275000-285000. One can also sell from 290000 maintaining a stop loss of 305000.

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