Silver Slips Below ₹2.6 Lakh as Gold Edges Lower—How to Adjust Your Gold and Silver Investment Strategy 2026
In a significant turn of events for the Indian bullion market on February 10, 2026, precious metals witnessed a sharp correction, leaving retail and institutional participants questioning the next move. Following a period of unprecedented volatility, silver prices crashed by approximately ₹5,000 per kg in early trade, slipping well below the psychologically critical ₹2.6 lakh mark. Gold followed suit, though with relatively less intensity, as profit-booking and shifting global macro-sentiments weighed on the gold and silver investment strategy 2026.
This article provides a comprehensive 1500-word analysis of the market crash, the underlying causes, and the professional roadmap for investors navigating this turbulent phase.
The February Meltdown: Breaking Down the Numbers
The morning session on the Multi Commodity Exchange (MCX) on Tuesday, February 10, 2026, opened with a “gap-down” that sent shockwaves through the community of traders. Silver futures for March 5, 2026 delivery plunged by 2%, losing nearly ₹4,905 to trade at ₹2,57,715 per kg. This move is particularly stark when compared to the all-time highs of ₹4.2 lakh recorded just weeks prior in late January.
Gold futures for April 2, 2026 delivery also slipped, losing roughly ₹2,000 to trade near ₹1,56,001 per 10 grams. While the yellow metal remains sitting on substantial year-to-date gains, the recent correction suggests that the “parabolic” phase of the rally may be cooling off, necessitating a revised gold and silver investment strategy 2026.
Current Market Snapshot (February 10, 2026)
| Asset | Current Price (MCX) | Change (Amount) | Change (%) |
| Silver (1 kg) | ₹2,57,715 | – ₹4,905 | – 2.0% |
| Gold (10g, 24K) | ₹1,57,350 | – ₹1,010 | – 0.64% |
| Retail Silver (Delhi) | ₹2,85,000 | – ₹10,000 | – 3.5% |
Why are Prices Falling? The “Trump-Warsh” Catalyst
To build an effective gold and silver investment strategy 2026, one must understand the external pressures driving this localized crash. The primary catalyst in February 2026 has been the “Warsh Effect.” U.S. President Donald Trump’s nomination of Kevin Warsh to succeed Jerome Powell as the Federal Reserve Chair has altered the global liquidity outlook.
Warsh is widely perceived as a “hawkish” policymaker—one who favors higher interest rates to curb inflation. This has led to:
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Dollar Strengthening: The U.S. Dollar Index (DXY) has surged to a two-week high, making dollar-priced commodities like silver and gold more expensive for Indian buyers.
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Margin Hikes: The Chicago Mercantile Exchange (CME) increased margins on silver futures by 15%, forcing leveraged speculators to liquidate their “long” positions rapidly.
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Profit Taking: After silver delivered over 160% returns in 2025, a correction was mathematically overdue.
Gold and Silver Investment Strategy 2026: Expert Insights
Market analysts are divided on whether this is a “buying opportunity” or the start of a “prolonged bear cycle.” However, the consensus for a gold and silver investment strategy 2026 remains rooted in disciplined accumulation.
1. The Case for Silver: Industrial Resilience
Despite the ₹5,000/kg drop, the long-term fundamentals for silver remain “structurally bullish.” Silver is no longer just a monetary asset; it is a critical industrial component for:
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Photovoltaics (Solar Panels): India’s massive push for green energy.
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Electric Vehicles (EVs): Silver’s superior conductivity makes it irreplaceable in EV circuitry.
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5G Infrastructure: The global rollout continues to consume silver at record rates.
The Strategy: Investors should look at the ₹2.45 lakh to ₹2.50 lakh zone as a major “support” level. If you are a long-term investor, using this “dip” to add Silver ETFs or physical bars could be beneficial as the supply deficit persists for the sixth consecutive year.
2. The Case for Gold: The Safe-Haven Anchor
Gold continues to act as the ultimate insurance policy. Even as prices edge lower, central banks (including the RBI and China’s PBOC) remain consistent buyers.
The Strategy: Analysts at J.P. Morgan and local firms like Motilal Oswal suggest that gold is “better placed” than silver for risk-averse investors. A solid gold and silver investment strategy 2026 involves maintaining a 10-15% portfolio allocation to gold to hedge against potential U.S.-Iran escalations and domestic currency depreciation.
Actionable Checklist for Investors
If you are holding precious metals or looking to enter the market today, follow this protocol:
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Avoid Panic Selling: Corrections of 10-20% are healthy in a bull market. If your entry was at ₹3 lakh+, selling now locks in a loss without a change in long-term fundamentals.
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The “SIP” Approach: Instead of a lump-sum investment, use the gold and silver investment strategy 2026 of staggered buying. Buy 25% of your intended quantity at the current level (₹2.57 lakh) and keep the rest for further potential dips near ₹2.40 lakh.
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Watch the U.S. Jobs Data: The U.S. non-farm payroll data due later this week will dictate the Federal Reserve’s next move. A “strong” jobs report will push the dollar higher and metals lower.
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Leverage SGBs and ETFs: For gold, Sovereign Gold Bonds (SGBs) remain the most tax-efficient route. For silver, ETFs provide liquidity that physical silver often lacks during volatile crashes.
As the Indian bullion market navigates the “Warsh Shock” of February 2026, the volatility in silver has reached historic levels. Following a brief rebound to ₹3 lakh yesterday, silver prices have softened again on February 10, 2026, trading near ₹2.90 lakh per kg.
For traders looking to capitalize on this volatility, here is a professional technical analysis chart report with specific levels for the next 48 hours.
Technical Analysis: Silver MCX (March 2026 Futures)
The “Bearish Spinning Top” formed on the weekly candle suggests that while the panic selling has paused, the bulls lack the momentum to push prices back to January’s ₹4.2 lakh peak. The market is currently in a “Price Discovery” phase between the 100-DEMA and the 50% Fibonacci retracement level.
Key Technical Levels
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Immediate Resistance (R1): ₹3,00,500 (Psychological hurdle & 20-DEMA)
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Major Resistance (R2): ₹3,20,000 (Breakdown point of Feb 1st)
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Immediate Support (S1): ₹2,75,000 (Recent bottom of Feb 6th)
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Critical Support (S2): ₹2,41,685 (Structural floor & 100-DEMA)
Trading Strategy: Next 48 Hours
| Strategy Type | Entry Zone | Target 1 | Target 2 | Stop-Loss |
| Intraday Short | ₹2,95,000 – ₹2,98,000 | ₹2,82,000 | ₹2,76,000 | ₹3,04,500 |
| Positional Long | ₹2,55,000 – ₹2,60,000 | ₹2,90,000 | ₹3,15,000 | ₹2,40,000 |
Analyst Note: The RSI has fallen from a peak of 95 to below 50, indicating a massive cooling of “overbought” conditions. However, with the Gold/Silver Ratio (Mint Ratio) rebounding to 63.50:1, gold is currently outperforming silver in stability.
Strategic Rationale & Market Indicators
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The “Warsh” Confirmation: Keep a close watch on the U.S. Senate hearings for Kevin Warsh. Any hawkish commentary will strengthen the Dollar Index ($DXY$), further pressuring silver toward the S1 level.
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Chinese Liquidity: With the Lunar New Year approaching (starting Feb 16), expect “thin” markets. Reduced speculative volume from China could lead to sharp, unpredictable “flash” moves in either direction.
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Industrial Demand: Despite the paper market collapse, physical silver remains in a deficit. Industrial “dip-buyers” in the solar and EV sectors are expected to provide a hard floor near the ₹2.41 lakh mark.
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