Gold prices on the Multi Commodity Exchange of India (MCX) slipped below ₹1.56 lakh per 10 grams on February 10, 2026, while silver prices declined nearly 2% in volatile trade. Traders responded to global cues, a firm US dollar, and aggressive profit booking after recent highs. The sharp intraday swings signaled caution across the precious metals segment and triggered fresh debate over near-term direction.
MCX gold futures opened weaker and extended losses through the morning session. Sellers dominated early trades as participants locked in gains from the previous rally. Analysts observed that gold had rallied strongly in recent weeks, which encouraged short-term traders to reduce exposure once momentum slowed. The break below ₹1.56 lakh intensified technical selling and pushed prices toward immediate support zones.
Silver mirrored gold’s weakness but showed sharper percentage losses. MCX silver futures dropped around 2% as traders unwound leveraged positions. Volatility increased after stop-loss orders activated near key chart levels. Dealers reported heavy two-way trade, with industrial buyers stepping in at lower levels while speculators continued to cut long bets.
Global developments influenced domestic price action. International gold prices eased as investors shifted funds toward equities after positive economic signals from major economies. A stronger US dollar reduced the appeal of bullion for overseas buyers. Since Indian futures track global benchmarks, the overseas dip filtered directly into MCX contracts.
Currency movement amplified the correction. The rupee traded in a narrow range, but dollar firmness capped any meaningful rebound in bullion. Traders monitor dollar index movements closely because gold often moves inversely to the greenback. As the dollar strengthened, bullion demand softened.
Market participants also tracked expectations around the Federal Reserve System. Policymakers signaled a steady approach toward interest rates, which reduced immediate fears of aggressive easing. Higher rate expectations generally discourage gold buying because investors prefer yield-bearing assets. Even subtle shifts in policy commentary influence bullion flows.
On the domestic front, jewellers in Mumbai reported moderate physical demand despite the decline. Retail buyers showed interest at lower levels, especially with the wedding season approaching. However, bulk purchases remained limited as buyers waited for clearer direction. Traders said volatility discouraged large commitments.
Technical analysts highlighted ₹1.55 lakh as the next key support for MCX gold. If prices hold above this zone, buyers may attempt a rebound toward ₹1.58 lakh. A sustained break below support could accelerate selling toward ₹1.52 lakh. Momentum indicators signaled cooling strength after an extended rally, which reinforced the corrective tone.
Silver’s chart structure appeared more fragile. Analysts identified ₹2.55 lakh per kilogram as immediate support. A move below this level could deepen losses toward ₹2.48 lakh. Upside resistance stands near ₹2.65 lakh, where previous selling pressure emerged. Silver often displays sharper swings than gold because industrial demand influences its pricing alongside investment flows.
Commodity strategists attributed part of the correction to portfolio rebalancing. Fund managers adjusted allocations after strong gains in precious metals during January. When large funds trim positions, futures markets reflect swift price adjustments. The February 10 session captured that dynamic clearly.
Energy markets also shaped sentiment. Oil price fluctuations affected inflation expectations, which in turn influenced gold’s appeal as a hedge. Stable crude prices reduced immediate inflation fears and weakened safe-haven demand. Investors weighed broader macroeconomic stability before increasing bullion exposure.
Despite the decline, many analysts maintained a constructive medium-term outlook. Central bank buying across emerging markets continues to support global gold demand. Geopolitical tensions in several regions also sustain long-term interest in safe-haven assets. However, short-term traders focus more on dollar trends and equity performance.
Retail investors reacted cautiously. Some viewed the dip as a buying opportunity, while others preferred to wait for confirmation of support levels. Financial advisors recommended staggered purchases rather than lump-sum entries during volatile phases. Risk management strategies gained renewed importance amid sharp intraday moves.
Market depth data showed heavy activity around intraday lows, which indicated bargain hunting. Volume spikes accompanied the price break, signaling strong participation. When high volume coincides with declines, markets often test additional support before stabilizing. Traders will watch follow-through action in upcoming sessions.
Bullion dealers also highlighted import cost dynamics. Any fluctuation in customs duties or currency valuation directly impacts domestic prices. Although no policy change occurred on February 10, traders kept policy risk in mind while planning positions.
Investor psychology played a visible role. After a sustained rally, markets often experience corrections that reset momentum. Such pullbacks do not necessarily signal a structural reversal. Many professional traders view corrections as healthy phases within broader uptrends.
In summary, MCX gold’s drop below ₹1.56 lakh and silver’s 2% slide reflected profit booking, global weakness, and dollar strength. The session underscored the sensitivity of precious metals to currency movements, policy expectations, and technical levels. Traders now await fresh cues from global markets and economic data releases. The coming sessions will determine whether buyers regain control or sellers extend the corrective phase.
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