Gold & Silver See Sharp Drop: US Data, Dollar Drive Decline on Feb 16

Gold and silver markets witnessed a significant downturn across India and on international exchanges today, February 16, 2026. The precious metals experienced considerable selling pressure, with MCX gold futures slipping below the crucial ₹1.55 lakh per 10 grams mark, while silver plunged even more sharply, shedding over 3% of its value. This broad-based decline left investors and jewelry shoppers watching prices fall across major Indian cities from Delhi to Bengaluru.

The slump was attributed to a combination of global factors. Internationally, Comex gold saw a significant drop of $65 per ounce, largely due to profit booking by traders. A firm US dollar also played a pivotal role, making dollar-denominated gold more expensive for holders of other currencies and reducing its appeal as a safe-haven asset. Furthermore, fresh US inflation data released recently appears to have weighed heavily on sentiment, particularly impacting silver prices. Gold and silver ETFs also took a hit, reflecting the negative market mood. While some news outlets speculated about a potential crash to below ₹1 lakh due to an unnamed country, the immediate drivers were clearly the strong dollar, profit booking, and economic data from the US.

As prices for 18K, 22K, and 24K gold registered declines in cities like Chennai, Ahmedabad, Mumbai, and Kolkata, both investors and prospective jewelry buyers are left wondering about the future trajectory. The key question remains whether precious metals will bounce back or continue their downward trend in the short term. Market analysts are closely watching global cues, especially US economic indicators and the movement of the US dollar, which will likely dictate the immediate outlook. For those considering purchases, it's advisable to keep an eye on these developments and check daily rates from trusted jewelers like Tanishq, Kalyan Jewellers, and Malabar Gold and Diamonds.