Precious metals are maintaining a firm trajectory as of February 20, 2026, driven by a convergence of heightened geopolitical anxiety and a major structural shift in domestic trading regulations. **Market Performance & Pricing** On the Multi Commodity Exchange (MCX), gold futures for the February 2026 contract are trading strongly higher, holding near **1,56,640** per 10 grams. This recovery follows a recent support floor established near **1,54,000**. Silver is showing even more aggressive recovery signs. After plunging to a weekly low of **2,55,000** per kg on February 18, it has rebounded by more than **15,000**, with MCX futures currently trading modestly higher near **2,70,100** per kg. Despite this bounce, silver remains approximately **34%** below its January all-time high of **4,10,000**. **Geopolitical Drivers** Safe-haven demand has surged due to a "fever pitch" in Middle East tensions. Reports of joint Iranian-Russian military exercises near the Strait of Hormuz, involving special forces and naval drills, have rattled global markets. Simultaneously, the largest U.S. air force deployment since 2003—featuring stealth fighters and aircraft carriers—has intensified fears of a direct confrontation. Global spot gold reflects this unease, hovering around the **5,000** per ounce mark, while international silver trades near **77** per ounce. **Liquidity and Regulatory Shifts** A pivotal change in market mechanics took effect on February 19, 2026. Both the MCX and the National Stock Exchange (NSE) officially withdrew additional margins that were imposed earlier in the month to control volatility. The removal of the **3%** additional margin on gold and the **7%** additional margin on silver is expected to significantly improve market participation. By reducing the upfront capital required to hold positions, exchanges aim to boost liquidity and retail involvement, even as global price swings remain elevated. **Trends and Outlook** The broader market remains caught between two conflicting forces: * **Supportive:** Persistent geopolitical risks and central bank accumulation, with gold now accounting for **17.2%** of India’s foreign exchange reserves. * **Pressure:** Uncertainty regarding the Federal Reserve's rate-cut path and a firm U.S. Dollar index. Technical indicators suggest gold is in a consolidation phase, seeking to reclaim the psychological **5,100** resistance level. Silver's outlook is bolstered by a projected market deficit of **67 million** ounces for 2026, though it faces immediate resistance in the **2,49,000** to **2,54,000** range on the MCX.