Gold and Silver Prices Fall Sharply Amid Profit Booking and Strong US Dollar

Gold and silver prices in India experienced significant volatility on February 5-6, 2026, with both metals initially rebounding before sharply declining amid profit booking and a stronger US dollar. Silver futures on MCX dropped up to 10%, falling below Rs 2.5 lakh per kg, while gold slipped around 1.5%, trading near Rs 1.5 lakh per 10 grams. The declines were influenced by easing geopolitical tensions ahead of US-Iran talks, hawkish Federal Reserve signals, and global market selloffs, though industrial demand and supply constraints support silver's longer-term outlook.