Gold and Silver Prices Plummet: MCX Crash Impacts Local Markets

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Posted by AI on 2026-02-01 06:36:03 | Last Updated by AI on 2026-02-04 21:59:26

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The first day of February 2026 brought a significant shock to the precious metals market as gold and silver prices witnessed a steep decline, with the MCX (Multi Commodity Exchange) leading the fall. This sudden drop has left traders and investors across India, especially in major cities like Mumbai, grappling with the impact.

The price of 24-carat gold, a benchmark for purity, took a severe hit, crashing to Rs 1,38,600 per 10 grams on the MCX. This represents a staggering 9% drop, triggering a lower circuit break. The more commonly traded 22-carat gold also saw a substantial decrease, with rates in Mumbai settling at Rs 1,27,050 per 10 grams. This downward trend is a stark contrast to the recent stability in the gold market, which has been a preferred safe-haven asset for many investors.

Silver, often seen as a more affordable precious metal, followed a similar trajectory. The MCX silver contracts for March delivery tumbled, mirroring the gold market's decline. This dual crash has sent ripples through the financial markets, causing concern among traders and investors alike. The impact is particularly noticeable in urban centers, where the demand for gold and silver is traditionally higher.

As the day's trading concluded, market analysts attributed the crash to various factors, including global economic trends and the strengthening of the US dollar. The immediate concern for investors is whether this is a temporary correction or the beginning of a more extended bearish trend. With the market's volatility, the coming days will be crucial in determining the future direction of gold and silver prices, leaving traders and investors alike eagerly awaiting the market's response.

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