Gold, silver futures tumble on MCX as U.S.–Iran talks dent safe-haven demand; margins tightened

Precious metals slide as MCX hikes margins, geopolitics ease fears

February 5, 2026

Silver bears the brunt as MCX tightens margins

Precious metals slide as MCX hikes margins, geopolitics ease fears

Gold and silver futures extended sharp losses on the Multi Commodity Exchange (MCX) on Thursday, snapping a two-day winning streak, as news of upcoming U.S.–Iran talks in Oman weakened safe-haven demand for precious metals.

Officials from both Washington and Tehran confirmed that discussions are scheduled for Friday, though significant differences remain. The U.S. wants Iran’s missile programme included in negotiations, while Iran has reiterated that talks will be restricted strictly to its nuclear agenda.

Silver plunges 10%, gold slips 3% on MCX

In early trade, MCX silver futures for March 5, 2026, plunged nearly 10%, shedding ₹25,844 to trade at ₹2,43,006 per kg.
Meanwhile, gold futures for April 2, 2026 delivery fell ₹4,591, or 3%, to ₹1,48,455 per 10 grams.

The sell-off mirrored global trends. In international markets, spot silver tumbled as much as 16.6%, after briefly reclaiming the $90 per ounce mark during early Asian trading. Spot gold declined up to 3.5% in volatile conditions.

MCX raises margins on gold and silver contracts

Adding to the pressure, the MCX announced higher margin requirements following a periodic risk review.

An additional 4.5% margin on silver and 1% on gold came into effect from February 5, 2026

A further 2.5% margin on silver and 2% on gold will apply from February 6, 2026

This takes the total additional margin to 7% for silver and 3% for gold.

Higher margins increase the capital needed to hold positions, typically leading to reduced leverage and short-term unwinding of speculative trades. Market participants expect silver to remain particularly vulnerable to sharp swings in the near term.

Analysts expect volatility amid global uncertainty

Market analysts expect continued volatility in gold and silver prices this week, driven by movements in the U.S. dollar index, concerns over a partial U.S. government shutdown, and persistent geopolitical tensions.

For the near term:

Gold support is seen at $4,884–$4,770, with resistance at $5,000–$5,145 per troy ounce

Silver support lies at $81.20–$78.00, while resistance is pegged at $88.80–$92.40 per troy ounce

MCX live prices and physical market update

On the MCX, gold was trading at ₹1,50,269 per 10 grams on February 5, down ₹2,777 or 1.82% from the previous close. During the session, prices touched a high of ₹1,51,948 and a low of ₹1,48,455.

Silver stock was trading at ₹236.57, down ₹41.48 or 14.92%, after hitting a day’s high of ₹259.83 and a low of ₹231, with NSE volumes at 22.66 lakh shares as of 10:14 am.

Earlier, silver futures had traded at ₹2,52,719 per kg, down ₹16,131 or 6%, moving within a range of ₹2,58,096 to ₹2,52,719.

In the physical market:

24K gold stood at ₹1,59,440 per 10 grams
22K gold at ₹1,46,150 per 10 grams
18K gold at ₹1,19,580 per 10 grams

Retail silver prices rebounded to ₹3,20,100 per kg from recent lows near ₹2,80,000, even as futures remained locked in the lower circuit, signalling continued selling pressure in derivatives markets.

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