Shares of Multi Commodity Exchange of India (MCX) came under sharp selling pressure during the special Union Budget session on Sunday, February 1, plunging as much as 15 percent in intra-day trade. The fall followed a heavy selloff in MCX silver contracts and lower circuit hits in MCX gold, marking the steepest single-day decline for the exchange’s stock in nearly five years.
Silver prices extended their steep losses on February 1, hitting the 9 percent lower circuit as investors rushed to book profits amid a global selloff triggered by a strengthening US dollar. Sentiment was further dampened by reports that CME Group was raising margins on Comex gold and silver futures. Caution ahead of the Union Budget 2026 also weighed on prices.
On MCX, silver prices fell 9 percent to hit the lower circuit at ₹2,65,652 per kg. Gold prices also slipped sharply, hitting the 9 percent lower circuit at ₹1,36,185 per 10 grams.
The selloff had already gathered pace on Friday, January 30. Silver prices had crashed 19 percent to ₹3.12 lakh per kg, while gold fell to ₹1.65 lakh per 10 grams. This came a day after silver touched a record high of ₹4,04,500 per kg on Thursday.
Global commodity markets have remained volatile since US President Donald Trump nominated Kevin Warsh as the new Federal Reserve Chair. Markets fear that a stronger US dollar under his leadership could reduce demand for safe-haven assets such as gold and silver.
Adding to the pressure, CME Group has announced higher margins on precious metal futures. Gold margins will rise to 8 percent of the contract value from 6 percent for non-heightened risk profiles, while silver margins will increase to 15 percent from 11 percent. Margins for heightened risk profiles will also be raised further.
The combination of a stronger dollar outlook, margin hikes, extreme price volatility and Budget-related caution triggered aggressive unwinding in precious metal positions, sharply impacting MCX shares during the session.
