Gold, Silver price: Profit-booking drags MCX futures lower; here’s how ETFs reacted
Gold futures on the Multi Commodity Exchange (MCX) slipped over 2.5%, while silver futures also declined sharply, reflecting profit-booking after a strong rally earlier this year.
- Feb 17, 2026,
- Updated Feb 17, 2026 3:12 PM IST
Gold and silver prices fell sharply on Tuesday, extending the recent volatility in the precious metals market as thin global participation, a stronger US dollar and easing geopolitical tensions weighed on investor sentiment. Gold futures on the Multi Commodity Exchange (MCX) slipped over 2.5%, while silver futures also declined sharply, reflecting profit-booking after a strong rally earlier this year. As per MCX data, gold contracts were at Rs 151,700 per 10 grams in the morning, while silver futures for one kilogram were trading at Rs 232,655.
In international markets, spot gold fell 1.5% to around $4,917 per ounce by early European trade after touching a more than one-week low of $4,862 per ounce. Market activity remained subdued as several major Asian markets were closed for Lunar New Year holidays, limiting liquidity and exaggerating price swings.
Sharp correction
The sharp correction comes after a powerful rally in early 2026 that saw gold breach the $5,000 per ounce mark and silver touch record highs. As of February 17, the rally appears to have entered a volatile consolidation phase, driven by a firmer US dollar, unwinding of leveraged positions and profit-taking by investors.
Market participants advised a disciplined approach at current levels. Existing investors are encouraged to consider partial profit-booking if gold and silver exposure exceeds 25–30% of portfolio allocation, while fresh investors are advised against chasing prices at elevated levels. Corrections, analysts said, could offer better entry points through staggered investments via gold ETFs or Sovereign Gold Bonds.
Silver extends correction
Silver prices underperformed gold, sliding over 2% to below $76 per ounce amid thin liquidity conditions in Asian markets, including China and Hong Kong. The metal has seen a sharper pullback after January’s speculative rally, with leveraged positions being unwound as risk appetite moderated.
With US markets reopening, attention has now shifted to upcoming macro cues, including Federal Reserve meeting minutes and core personal consumption expenditure (PCE) inflation data. On the domestic front, MCX Silver March futures may drift towards Rs 2,35,000 per kg if weak global sentiment persists.
Gold ETFs vs silver ETFs
The decline in futures prices was reflected across commodity-based exchange-traded funds (ETFs). Baroda BNP Paribas Gold ETF fell around 4% on Tuesday, hitting an intraday low of ₹146.8. Several other gold ETFs, including UTI Gold ETF, Nippon India Gold ETF, Zerodha Gold ETF and HDFC Gold ETF, declined by up to 2% each.
Silver ETFs saw steeper losses. Edelweiss Silver ETF and ICICI Prudential Silver ETF were among the worst performers, dropping around 4%, while Zerodha Silver ETF declined nearly 3%. Other schemes such as Kotak Silver ETF, Tata Silver ETF, Groww Silver ETF, SBI Silver ETF and DSP Silver ETF slipped by up to 2%.
Dollar strength
The US dollar index rose about 0.2% against a basket of major currencies, making dollar-priced bullion more expensive for holders of other currencies. Meanwhile, markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea remained closed for the Lunar New Year, further dampening participation.
What analysts say
Manav Modi, Commodities Analyst, said gold continues to hover near the $5,000 per ounce mark as dollar strength offsets support from softer bond yields. He added that tighter curbs on speculative futures trading in China and holiday-related closures have reduced volumes, keeping near-term direction uncertain.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that gold slipped below $4,970 per ounce amid thin volumes, with investors now awaiting Fed minutes, US GDP and PCE data. On the domestic front, MCX Gold April futures could drift towards ₹1,54,000 per 10 grams on mildly weak global cues.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, said the current easing in gold prices appears to be part of a consolidation phase rather than a reversal, while silver’s sharper correction reflects its higher volatility and sensitivity to industrial sentiment.
Gold and silver prices fell sharply on Tuesday, extending the recent volatility in the precious metals market as thin global participation, a stronger US dollar and easing geopolitical tensions weighed on investor sentiment. Gold futures on the Multi Commodity Exchange (MCX) slipped over 2.5%, while silver futures also declined sharply, reflecting profit-booking after a strong rally earlier this year. As per MCX data, gold contracts were at Rs 151,700 per 10 grams in the morning, while silver futures for one kilogram were trading at Rs 232,655.
In international markets, spot gold fell 1.5% to around $4,917 per ounce by early European trade after touching a more than one-week low of $4,862 per ounce. Market activity remained subdued as several major Asian markets were closed for Lunar New Year holidays, limiting liquidity and exaggerating price swings.
Sharp correction
The sharp correction comes after a powerful rally in early 2026 that saw gold breach the $5,000 per ounce mark and silver touch record highs. As of February 17, the rally appears to have entered a volatile consolidation phase, driven by a firmer US dollar, unwinding of leveraged positions and profit-taking by investors.
Market participants advised a disciplined approach at current levels. Existing investors are encouraged to consider partial profit-booking if gold and silver exposure exceeds 25–30% of portfolio allocation, while fresh investors are advised against chasing prices at elevated levels. Corrections, analysts said, could offer better entry points through staggered investments via gold ETFs or Sovereign Gold Bonds.
Silver extends correction
Silver prices underperformed gold, sliding over 2% to below $76 per ounce amid thin liquidity conditions in Asian markets, including China and Hong Kong. The metal has seen a sharper pullback after January’s speculative rally, with leveraged positions being unwound as risk appetite moderated.
With US markets reopening, attention has now shifted to upcoming macro cues, including Federal Reserve meeting minutes and core personal consumption expenditure (PCE) inflation data. On the domestic front, MCX Silver March futures may drift towards Rs 2,35,000 per kg if weak global sentiment persists.
Gold ETFs vs silver ETFs
The decline in futures prices was reflected across commodity-based exchange-traded funds (ETFs). Baroda BNP Paribas Gold ETF fell around 4% on Tuesday, hitting an intraday low of ₹146.8. Several other gold ETFs, including UTI Gold ETF, Nippon India Gold ETF, Zerodha Gold ETF and HDFC Gold ETF, declined by up to 2% each.
Silver ETFs saw steeper losses. Edelweiss Silver ETF and ICICI Prudential Silver ETF were among the worst performers, dropping around 4%, while Zerodha Silver ETF declined nearly 3%. Other schemes such as Kotak Silver ETF, Tata Silver ETF, Groww Silver ETF, SBI Silver ETF and DSP Silver ETF slipped by up to 2%.
Dollar strength
The US dollar index rose about 0.2% against a basket of major currencies, making dollar-priced bullion more expensive for holders of other currencies. Meanwhile, markets in mainland China, Hong Kong, Singapore, Taiwan and South Korea remained closed for the Lunar New Year, further dampening participation.
What analysts say
Manav Modi, Commodities Analyst, said gold continues to hover near the $5,000 per ounce mark as dollar strength offsets support from softer bond yields. He added that tighter curbs on speculative futures trading in China and holiday-related closures have reduced volumes, keeping near-term direction uncertain.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that gold slipped below $4,970 per ounce amid thin volumes, with investors now awaiting Fed minutes, US GDP and PCE data. On the domestic front, MCX Gold April futures could drift towards ₹1,54,000 per 10 grams on mildly weak global cues.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association, said the current easing in gold prices appears to be part of a consolidation phase rather than a reversal, while silver’s sharper correction reflects its higher volatility and sensitivity to industrial sentiment.