On Thursday, MCX spot prices for gold and silver are showing strength. Gold trades around Rs 1,54,908 for 10 gram 24 carat, up by 2%, while silver trades at Rs 2,47,085 per kg, up by 4%.
Gold and silver ETFs listed on Indian stock exchanges also ended the day in green. The market price of all Silver ETFs jumped up to 5% while gold ETFs gained up to 3.18% from the previous close.
The big boost for traders came after the Multi-Commodity Exchange (MCX) and the National Stock Exchange of India (NSE) lifted the additional margins on gold and silver futures, effective February 19.
The 3% extra margin on gold and 7% on silver were removed, aiming to enhance liquidity and encourage trading in bullion contracts.
Motilal Oswal Gold ETF was the highest gainer, while Tata Silver Exchange Traded Fund saw the maximum volume of trades. Nippon India Gold BEES, the largest gold ETF scheme in India, saw the maximum value of trades.
Gold futures are trading around Rs 1,56,076 per ten gram and are flat for 02 APR 2026 contracts, while silver futures at around Rs 2,45,592 per kg, are slightly up on Thursday’s trade. In the international market, gold is facing resistance at around $5,000, up by less than a percentage, while silver too faced pressure around $79, up by almost 2% on Thursday.
Precious metals are facing pressure from a strengthening dollar index. The increase in bullion prices should be tracked closely as the US dollar has risen to a one-week high. A stronger dollar usually makes gold and silver pricier for international buyers, which can restrain further price increases.
Market focus is on upcoming US PCE inflation and GDP data, which may influence Federal Open Market Committee (FOMC) policy. January meeting minutes revealed a division among Fed officials, with some advocating a pause in rate cuts and others considering potential rate hikes, suggesting a two-sided outlook for future policy. Traders, therefore, have reduced their expectations for several rate cuts in 2026.
Short-term demand for precious metals declined during China’s Lunar New Year holiday due to decreased liquidity and limited investor participation. Additionally, geopolitical risks related to Iran have reemerged, with indications that potential US military actions could lead to a prolonged campaign following inconclusive discussions.