Mumbai: Indian financial markets witnessed heavy losses on Thursday as precious metals tumbled sharply and equity benchmarks closed in the red, wiping out over ₹2 lakh crore in investor wealth amid a stronger U.S. dollar and Federal Reserve-related anxieties.
Silver and gold prices ended a two-day rebound with steep declines of up to 10% in futures trading on February 5, 2026, tracking weak global trends and heightened volatility in precious-metal markets. On the Multi Commodity Exchange (MCX), silver for March delivery plunged by ₹26,850, or 10%, to ₹2,42,000 per kilogram, compared with the previous session’s close of ₹2,68,850 per kg.
Gold for April contract dropped by ₹2,310, or 1.51%, to ₹1,50,736 per 10 grams against Wednesday’s closing level of ₹1,53,046 per 10 grams.
“Gold and silver erased recent gains, snapping a two-day rebound as renewed selling pressure and heightened volatility returned to precious-metal markets,” Renisha Chainani, Head of Research at Augmont, said.
International markets mirrored the domestic downturn. On the Comex, silver for March delivery fell by $8.85, or 10.48%, to $75.55 per ounce, while intraday trade saw it plunge over 13% to a low of $73.38 per ounce.
“Silver plunged as much as 14% to around $73 per ounce, snapping a two-day rebound as precious metals faced renewed selling pressure and heightened volatility. Despite hopes that dip buyers might step in at lower levels, the decline in silver and other metals appears set to continue after the recent rebound failed to hold,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Comex gold for April delivery also declined $80, or 1.61%, to $4,870.9 per ounce. In the previous session, the yellow metal had crossed the $5,000 threshold again, touching a near two-week high of $5,113.9 per ounce before settling at $4,950.8 per ounce.
Mr. Trivedi attributed the selloff to a stronger U.S. dollar, driven by hawkish signals from the Federal Reserve and expectations of a slower pace of rate cuts.
“Investors considered the implications of Kevin Warsh’s nomination as Fed chair, noting his preference for a smaller Fed balance sheet and expectations that he would be less aggressive on rate reductions,” he added.
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Chainani of Augmont added that China’s gold exchange traded funds witnessed record daily outflows, with nearly $1 billion withdrawn from major bullion-backed funds following the sharp price correction that unsettled investor confidence.
On the geopolitical front, traders remained cautious ahead of Iran-U.S. talks scheduled for Friday, February 6, 2026. U.S. President Donald Trump also held wide-ranging discussions with Chinese President Xi Jinping ahead of a proposed April visit, following Mr. Xi’s recent virtual meeting with Russian Vladimir Putin.
“In the short term, gold prices are likely to remain weak and consolidate within the $4,550-$5,100 range (₹1.4-1.6 lakh per 10 grams), while silver is also expected to trade weak and consolidate in the $74-91 range (₹2.35-2.85 lakh per kilogram),” Mr. Chainani said.
Meanwhile, Indian stock markets closed lower in Mumbai. The Nifty 50 ended at 25,642.80, down 133.20 points (0.52 percent), while the BSE Sensex closed at 83,313.93, falling 503.76 points (0.60 percent). Both indices stayed in the red through most of the trading session, showing weak market mood.
Markets opened slightly higher but quickly slipped into negative territory. Nifty moved between 25,579 and 25,757 during the day, while Sensex traded between 83,151 and 83,784. Afternoon trading showed small recovery attempts, but selling pressure returned before closing.
Nifty’s previous close was 25,776, while Sensex closed earlier at 83,817. Today’s closing levels show markets failed to hold key support levels. The fall was not very sharp but steady through the session.
Nifty’s 52-week high is 26,373, and low is 21,743. Sensex’s 52-week high is 86,159, and low is 71,425. Current levels are closer to yearly highs than lows, showing the long-term trend is still strong, but short-term weakness is visible.
The market fall looks like normal correction after recent gains with no sign of heavy panic selling. However, investors may stay cautious in the short term due to global cues and profit booking. If markets hold above current support levels, recovery can happen quickly, but if selling continues, more sideways movement is possible.
Disclaimer: This news is for information only and not investment advice. Stock market investments are subject to risks. Investors should check financial advisors before taking decisions. Past performance does not guarantee future returns.
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