MCX Sees Gold Recover Intraday Amid Global Volatility

MCX Gold and Silver See Sharp Intraday Volatility

Gold and silver prices witnessed sharp swings during Monday’s intraday trade on the Multi-Commodity Exchange (MCX), with both metals staging a recovery from deep early losses. Gold futures managed to turn positive during the session, while silver erased a large part of its decline but continued to trade in the red by evening.

The movement follows a steep correction last week, when precious metals recorded their sharpest intraday fall in more than a decade amid global policy cues and higher margin requirements.

Gold Recovers From Day’s Lows, Still Below Recent Peak

The February gold futures contract on MCX opened lower at ₹1,46,500 per 10 grams. Selling pressure intensified through the session, dragging prices to an intraday low of ₹1,37,065. From there, gold recovered ₹13,825 to hit a high of ₹1,50,890.

Despite the rebound, prices remain nearly 21 per cent below Thursday’s peak of ₹1,80,779. In the previous session on Friday, gold had fallen close to ₹20,000 per 10 grams to ₹1,49,653, marking its steepest intraday crash in over ten years.

Silver Futures Rebound Sharply, Losses Persist

March silver futures also saw a sharp bounce after slipping to a low of ₹2,25,805 per kilogram. Prices recovered ₹35,868, or about 14 per cent, to touch an intraday high of ₹2,61,673. Even after the recovery, silver was trading about 5 per cent lower as of 8:00 pm.

The recent volatility comes after a strong rally that extended into January, details of which were earlier covered in City Buzz Daily’s report on the MCX gold and silver slide ahead of the Union Budget 2026.

Global Markets Reflect Similar Swings

In international markets, spot gold prices recovered 11 per cent from the day’s low to trade at $4,884 per troy ounce. Spot silver prices rebounded 23.3 per cent from intraday lows to $87.96 per ounce, reflecting similar volatility seen on domestic exchanges.

Fed Expectations and Margin Hikes Drive Sell-Off

Market sentiment weakened last week after US President Donald Trump nominated Kevin Warsh to lead the Federal Reserve. Traders view Warsh as a strong inflation hawk, raising expectations of tighter monetary policy and supporting the US dollar, which typically pressures dollar-denominated commodities.

Adding to the sell-off, CME Group announced a hike in margins on metal futures, effective after market close on Monday. The margin increase triggered further unwinding of leveraged positions.

Reports of losses among Chinese metals traders, including unfinished deals after a counterparty fled the country, also weighed on sentiment, contributing to the sharp correction across precious metals.

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