The yellow gold regained power after declining following the Budget 2026 sell-off as bargain hunters intervened and mood around the world recovered. A clear shift in investor sentiment was indicated by the rally, which was seen in all of the major bullion markets.
Strong Recovery Indicates a Change in Market Attitude
Gold rates climbed significantly compared to the previous session.
- 24K gold: ₹15,944 per gram (up ₹551)
- 22K gold: ₹14,615 per gram (up ₹505)
- 18K gold: ₹11,958 per gram (up ₹413)
The magnitude of the comeback was demonstrated a day earlier when the price of 22K gold was ₹14,110 and that of 24K gold was ₹15,393 per gram.
In terms of derivatives, MCX Gold Futures (February 2026) recovered a significant psychological hurdle by trading close to ₹1,59,440 per 10 grams. Due to technical triggers, dip buying from physical investors, and positive global data, purchasers may be returning at lower levels, as indicated by the sharp increase. A large portion of the loss noted following the budget has since been recouped.
MCX Trends: Precious Metals Move In Opposite Directions
While gold strengthened, silver presented a mixed picture.
- MCX Gold Futures (Feb 2026): ₹1,59,440 per 10 g
- MCX Silver Futures (Feb 2026): near ₹2,80,000 per kg after hitting a 4% lower circuit
- Retail silver price: ₹3,20,100 per kg, up ₹100 from the previous close
Although both metals had previously moved in tandem during the larger commodity rally, actual prices showed some durability, but silver’s futures decline produced a startling difference.
City-Wise Gold Rates Reflect Broad-Based Buying
Major cities gold prices mostly stayed the same, suggesting consistent demand during the rise.
Mumbai
24K: ₹15,944 | 22K: ₹14,615 | 18K: ₹11,958
Delhi
24K: ₹15,959 | 22K: ₹14,630 | 18K: ₹11,973
The slight premium in the national capital points to stronger local buying interest.
Kolkata
24K: ₹15,944 | 22K: ₹14,615 | 18K: ₹11,958
Bengaluru
24K: ₹15,944 | 22K: ₹14,615 | 18K: ₹11,958
Investors in the technology hub were seen re-entering the market.
Chennai
24K: ₹16,256 | 22K: ₹14,900 | 18K: ₹12,750
While taking part in the national rally, the southern city maintained its higher prices, especially for 18K gold. Similar prices were reported by other cities, including Hyderabad, Kochi, Pune, and Ahmedabad, highlighting the steady pace.
Global Support Lifts Gold
Additionally, international prices increased, reversing a multi-session slump. The recovery was aided by speculators short covering and new physical demand from important markets like China.
While the dollar held firm, a minor decline in US Treasury yields provided additional support for the metal. Gold effectively defended a critical technical support level, according to market watchers, which led to algorithm driven and momentum buying.
Silver Struggles As Futures Market Slides
India’s silver prices revealed increasing volatility. The futures market was still under tremendous pressure even when retail rates slightly increased.
Retail silver prices (5 February 2026)
- 1 gram: ₹320.10
- 8 grams: ₹2,560.80
- 10 grams: ₹3,201
- 100 grams: ₹32,010
- 1 kg: ₹3,20,100
From its crash low of ₹2,80,000 on February 3rd, the metal has recovered more than ₹40,000 per kilogram. The ongoing lower circuit in futures, however, suggests that volatility is still high and that there is little derivative support for the comeback.
Two-Tier Market Emerges For Silver
Futures are selling around ₹40,000 per kilogram below physical rates, creating an uncommon pricing difference. After last week’s steep decline, analysts blame the futures drop on speculative withdrawals, margin calls, and minimal purchasing activity.
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The discrepancy points to a lack of liquidity in paper markets. Investors and industrial users physical need will now be very important. Futures could continue to be susceptible to further falls in the absence of a clear shift.
Gold To Silver Ratio Widens As Outlook Diverges
The gold to silver ratio has greatly increased due to the striking disparity in performance. Silver’s uncertain future contrasts with gold’s tenacity, so traders are keeping a careful eye on whether actual purchases can bring the market back to equilibrium.
