Silver ETFs Plunge 21%, Gold ETFs Drop 7% as Bullion Weakens on MCX

Silver ETFs plunged up to 21% and gold ETFs fell 7% on MCX as bullion prices weakened ahead of U.S.-Iran talks. Axis Silver ETF saw the sharpest decline, while MCX imposed higher margins on gold and silver futures. Analysts highlighted key support and resistance levels, recommending selective buying with stop losses. Experts advise keeping gold at 10% of portfolios and accumulating silver via SIPs over a long-term horizon.

Feb 5, 2026 0 26

Silver ETFs Plunge 21%, Gold ETFs Drop 7% as Bullion Weakens on MCX

Precious metal ETFs witnessed sharp declines on Thursday as gold and silver futures opened lower on MCX, breaking a two-day winning streak. The upcoming U.S.-Iran talks in Oman dampened safe-haven demand, triggering volatility across bullion markets.

Silver ETFs Face Steep Losses

Silver ETFs saw the deepest cuts, with Axis Silver ETF falling 21% to ₹216.86 from its previous close of ₹275. Other funds, including DSP Silver ETF, SBI Silver ETF, and Kotak Silver ETF, dropped between 16–17% during the session.

Gold ETFs Slide Amid Margin Hike

Gold ETFs fell up to 7% as MCX imposed additional margins following a risk review — 4.5% on silver futures and 1% on gold futures, effective February 5, 2026.

Key Support and Resistance Levels

According to Manoj Kumar Jain of Prithvi Finmart:

Gold support: ₹1,50,500–₹1,47,700 | Resistance: ₹1,56,800–₹1,60,000
Silver support: ₹2,61,100–₹2,55,000 | Resistance: ₹2,78,000–₹2,86,000

He added that silver is likely to hold support near $71 per troy ounce and gold around $4,440 per troy ounce on a weekly closing basis.

Expert Investment Strategies

Jain recommends:

Buy gold above ₹1,54,000 with stop loss below ₹1,51,800; targets ₹1,56,800–₹1,58,500.
Buy silver above ₹2,70,000 with stop loss below ₹2,61,100; targets ₹2,78,000–₹2,84,000.

Meanwhile, Sandip Raichura of PL Capital advised that gold should consistently form 10% of portfolios, while silver — given its volatility — should be accumulated via SIP over a 5-year horizon.