Key Highlights
- MCX Gold: Prices fell by ₹1,053 (0.68%) to trade at ₹1,53,707 per 10 grams.
- MCX Silver: Significant drop of ₹2,856 (1.19%), bringing the price down to ₹2,37,035 per kg.
- Import Surge: January 2026 saw gold imports hit a record $12 billion, a 349% year-on-year increase.
- New Strategy: India is diversifying its sourcing, moving from UAE reliance to increased precious metal imports from the US.
- Market Drivers: A strengthening US dollar and lower trading volumes due to the Lunar New Year in China have added downward pressure.
The Indian bullion market witnessed a dramatic start on the morning of February 17, 2026, as both gold and silver prices experienced a sharp downturn. On the Multi Commodity Exchange (MCX), silver futures for March delivery tumbled by ₹2,856 to reach ₹2,37,035 per kg. Simultaneously, gold futures for April delivery declined by over ₹1,000, settling near the ₹1,53,707 mark for 10 grams.
This correction comes after a period of high volatility, where prices were buoyed by safe-haven demand. However, current market sentiment is being dictated by extensive profit-booking. Experts suggest that as the US dollar continues to strengthen, with the dollar index hovering around 97.15, gold becomes more expensive for international buyers, naturally curbing demand and forcing a price correction.
Record Imports and Global Influences
India’s appetite for precious metals remains unprecedented, despite the recent price dip. Official data for January 2026 reveals that gold imports surged to a staggering $12 billion, while silver imports jumped 127% to surpass $2 billion. This massive influx of metal has significantly widened India’s trade deficit, which hit a three-month high of $34.68 billion in January.
Global factors are also playing a crucial role. With Chinese markets closed for the Lunar New Year, trading volumes have thinned, leading to exaggerated price swings. Additionally, optimism surrounding indirect nuclear talks between the US and Iran has eased some geopolitical tensions, reducing the immediate “safe-haven” appeal of gold.
A Strategic Pivot to the United States
In a significant policy shift, the Indian government is looking to rebalance its trade dynamics. Traditionally, India has relied heavily on the UAE for its bullion requirements, but senior officials have indicated a plan to source more gold and silver from the US.
This move is intended to serve a dual purpose: it aims to stabilize domestic prices by diversifying supply chains and helps narrow the trade surplus India currently holds with the United States. By integrating US precious metals into the import basket, the government hopes to create a more resilient market that is less susceptible to regional supply shocks.
Investor Outlook: Buy or Wait?
For retail buyers and investors, the current decline presents a complex decision. While the dip offers a window for those needing jewelry for the upcoming wedding season, market analysts recommend caution. The technical support for gold currently sits near ₹1,53,100, and a breach below this could see prices sliding toward the ₹1,51,000 level.
