Precious Metals Market Update: February 2026 Gold and silver markets have entered a sharp corrective phase this month, following record-breaking speculative surges in January. While prices remain high by historical standards, recent sessions have seen a significant retreat as global liquidity shifts. Gold Performance and Domestic Rates Gold prices in India have slipped nearly **16%** over the past fortnight. On the Multi Commodity Exchange (MCX), April futures settled near **₹1.55 lakh** per 10 grams, down from recent peaks of **₹1.80 lakh**. In local retail markets, 24-carat gold is currently trading at approximately **₹15,420** per gram. The 22-carat variant, commonly used for jewelry, has adjusted to roughly **₹14,135** per gram. This correction has been accelerated by a stronger US dollar and a decrease in safe-haven buying. Silver’s Volatility and Correction Silver has experienced a much more dramatic downturn, plunging **38%** from its January highs. After briefly touching an all-time record of **₹4.04 lakh** per kilogram on January 29, prices have now retreated to the **₹2.33 lakh** to **₹2.60 lakh** range. The white metal's sharp decline is attributed to the unwinding of heavy speculative positions and a "liquidity vacuum" caused by the Lunar New Year holidays in China—a major hub for silver demand. Internationally, spot silver is trading near **$74.50** per ounce. Consumer Sentiment and Wedding Demand Despite these double-digit percentage drops, retail buyers remain largely on the sidelines. Market reports indicate that store footfalls have increased, but actual transactions are predominantly limited to essential wedding purchases. Many consumers are adopting a wait-and-see approach, anticipating that prices may decline further before stabilizing. While lightweight jewelry is seeing some movement, high-end luxury purchases have slowed as the market searches for a definitive floor. Global Triggers and Short-Term Outlook Several macroeconomic factors are currently weighing on precious metals: * **Liquidity:** Major Asian markets, including China and South Korea, remain closed for holiday periods, reducing overall trading volume. * **Currency:** The US Dollar Index has strengthened to **104.50**, making dollar-denominated metals more expensive for international buyers. * **Geopolitics:** Preliminary reports of diplomatic discussions in Geneva have slightly eased the geopolitical risk premium that previously supported higher prices. Analysts expect volatility to persist through late February. Support levels for gold are currently eyed near **₹1.52 lakh**, while silver is expected to test the **₹2.28 lakh** mark if the current bearish momentum continues.