Silver ETFs crash up to 21%, gold ETFs slide 7% as bullion sinks on MCX. What should investors do?

Thu Feb 05 2026

Silver and gold ETFs fell by up to 21% on Thursday as gold and silver futures opened sharply lower on MCX, snapping a two-day winning streak. The news of upcoming U.S.-Iran talks in Oman on Friday dampened safe-haven demand.

Silver ETFs saw deep cuts, with some plunging as much as 21%. Axis Silver ETF dropped the most, hitting a low of Rs 216.86 versus the previous close of Rs 275. Other ETFs, including DSP Silver ETF, SBI Silver ETF and Kotak Silver ETF, declined 16–17% during the session.

Gold ETFs dropped up to 7% on Thursday.

MCX has imposed additional margins on gold and silver futures across all variants after a periodic risk review. An extra margin of 4.5% on silver futures and 1% on gold futures took effect from February 5, 2026 (beginning of day)

Manoj Kumar Jain of Prithvi Finmart said On MCX, gold has support at Rs 1,50,500–Rs 1,47,700 and resistance at Rs 1,56,800–Rs 1,60,000, whereas silver has support at Rs 261100–Rs 255000 and resistance at Rs 2,78,000–Rs 2,86,000.

According to Jain, precious metals are currently witnessing sharp price swings, although silver is likely to hold support near $71 per troy ounce and gold around $4,440 per troy ounce on a weekly closing basis.

On Wednesday, commodity-based ETFs were up by as much as 9% and gold and silver futures were up for a second consecutive session.

Jain recommends buying gold above Rs 154000 with a stop loss below Rs 1,51,800 for targets of Rs 1,56,800–Rs 1,58,500, and buying silver above Rs 2,70,000 with a stop loss below Rs 261100 for targets of Rs 2,78,000–Rs 2,84,000.

Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital, shared with ETMutual Funds that gold should form 10% of client portfolios at all points in time and silver, being a very volatile commodity, should ideally be accumulated via the SIP route and with a 5-year timeframe.

Source: https://economictimes.indiatimes.com