365telugu.com online news, MUMBAI,February 2, 2026: The “brutal bloodbath” in precious metals intensified on Monday as gold and silver prices continued their downward spiral for the third consecutive session. On the Multi Commodity Exchange (MCX), panic selling triggered lower circuits, leaving investors and traders grappling with one of the steepest market corrections in over a decade.
By mid-day, MCX Silver futures plummeted by 12% to hit a lower circuit of ₹2,25,805 per kg, while MCX Gold dropped by 6%, sliding to an intraday low of ₹1,37,453 per 10 grams.
The Anatomy of a Crash: From Record Highs to Freefall
Just days ago, both metals were celebrating historic peaks. However, the reversal has been swift and devastating:
Silver’s Collapse: After touching a lifetime high of ₹4,20,048 on Thursday, January 30, silver has crashed by nearly ₹1.94 lakh (46%) in just three trading sessions.
Gold’s Retreat: The yellow metal has fallen approximately 24% from its Thursday peak of ₹1,80,799.
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Key Triggers: The “Warsh” Factor and Margin Hikes
Analysts point to a “perfect storm” of global and domestic factors driving the sell-off:
Hawkish Fed Nomination: U.S. President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair has sent shockwaves through the market. Viewed as an “inflation hawk,” Warsh is expected to favor tighter monetary policy, which has bolstered the U.S. Dollar and dampened the appeal of non-yielding bullion.
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CME Margin Hikes: The CME Group (Chicago Mercantile Exchange) implemented a second significant hike in margin requirements today. For gold, margins rose to 8%, while silver margins jumped to 15%. This forces speculative traders to either deposit more cash or liquidate their positions, adding massive downward pressure.
Profit Booking & Technical Break: After a relentless rally in January, the breach of key support levels triggered automated “sell” orders, turning a correction into a full-scale rout.
The Union Budget 2026, presented on Sunday, offered no reprieve for the bullion market. Contrary to some industry hopes, the government maintained the existing import duty structure. Traders who had “discounted” a potential duty hike in their pricing were forced to recalibrate, contributing to the continued slide on Monday morning.
Investor Outlook: Accumulate or Exit?
Despite the “scary” screen prices, some experts are calling for calm.
Akshat Garg (Choice Wealth): “This isn’t a moment for panic. Gold and silver are portfolio hedges, not trading bets. Staggered buying during corrections often works better than chasing rallies.”
Technical View: Analysts suggest that while volatility will remain extreme, silver may find structural support around the ₹2,10,000–₹2,25,000 zone, while gold is expected to defend the ₹1,32,000 level on a closing basis.