Why did gold futures recover sharply on February 2, 2026?

Gold futures recovered sharply on February 2, 2026, after an early crash, as buying interest emerged at lower levels, suggesting a market correction rather than a trend reversal.

What is the outlook for silver futures after its recent declines?

Silver futures continued to experience heavy pressure for a third consecutive session, with analysts noting a deeper correction partly due to higher margin requirements impacting leveraged traders.

What factors support the long-term bullish trend for gold according to analysts?

The long-term bullish trend for gold is supported by central bank buying, geopolitical risks, and demand for portfolio diversification, with experts expecting it to surpass recent highs in 2026.

Home / Business and Economy / Gold Recovers After Steep Plunge, Silver Struggles

Gold Recovers After Steep Plunge, Silver Struggles

2 Feb

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Summary

Gold futures saw a dramatic recovery after an early crash.
Silver futures experienced heavy pressure for a third consecutive session.
Analysts cite a needed correction rather than a trend reversal for gold.

Gold Recovers After Steep Plunge, Silver Struggles

Gold futures experienced a dramatic turnaround on Monday, February 2, 2026, recovering sharply after an early crash that activated the exchange's lower circuit. April gold futures on the Multi Commodity Exchange (MCX) initially plunged by ₹10,688, a 7.2% drop, to an intraday low of ₹1.37 lakh per 10 grams.

However, buying interest emerged at lower levels, allowing gold to not only recover its losses but also turn positive. By afternoon trade, the contract saw a gain of ₹259, or 0.18%, settling at ₹1.48 lakh per 10 grams. This volatility is seen by market participants as a much-needed correction after a period of consistent gains.

In contrast, silver futures continued to face heavy pressure for the third consecutive session. MCX silver futures slid significantly, hitting a lower circuit of ₹2.25 lakh per kg. Despite trimming some losses, silver ended down 5.8%, reflecting its weaker market performance compared to gold.