Gold and silver rates today: Gold and silver prices continued their downward trajectory on Monday, February 2, tracking weakness in global bullion markets as risk-off sentiment prevailed amid a stronger US dollar. Profit-taking by investors also weighed on sentiment.
On Monday, MCX gold prices traded ₹8,865, or 6%, lower at ₹1,38,888 per 10 grams, while MCX silver prices tumbled ₹31,878, or 12%, to ₹2,33,774 per kg, on February 2.
Today’s decline pushed gold prices 24% lower from their record high of ₹1,80,799 hit on Thursday, January 29. Meanwhile, silver prices have crashed 44% from the peak of ₹4,20,048.
The trigger for the dramatic selloff in gold and silver prices was the nomination of Kevin Warsh as chair of the Federal Reserve by US President Donald Trump. According to a Bloomberg report, traders regard Warsh as the toughest inflation fighter among the final candidates, raising expectations of tighter monetary policy that would underpin the US dollar.
A strong greenback increases the cost of buying gold for holders of other currencies, weighing on demand.
Gold vs silver — Which is a better asset to buy now?
Investors must note that despite the sharp decline in the precious metals, gold and silver investors, who caught the cycle early, are sitting on massive gains. Gold prices had surged over 70% last year, and silver 170% in 2025.
However, the recent decline has erased most of the gains logged by the metals in the first month of the new year, with a deeper cut seen in the prices of white metal, underscoring the more volatile nature of silver.
According to the data by The Conversation, silver’s spectacular gain had come with 36% “annualised volatility”, which measures how much a stock price varies over one year. This was nearly double that of gold’s 20% volatility over the same period.
What it signals is that what goes up fast can come down quickly, too.
Therefore, Mirrae Asset, in a recent report, also signaled that it currently prefers gold over silver amid extreme volatility in both precious metals.
“We have maintained a cautious stance on silver following its parabolic move and have suggested trimming overallocation to precious metals to realign portfolios with long-term strategic allocation levels. While it is prudent to wait for further information and trend confirmation, we currently prefer gold from a relative risk–reward perspective,” it said.
Gold is widely regarded as an effective hedge against equity market corrections, currency weakness, inflation uncertainty, and rising geopolitical tensions. In contrast, silver tends to remain more vulnerable due to its higher price swings, especially when risk appetite deteriorates.
Rahul Kalantri, VP, Commodities at Mehta Equities, also believes that amid market volatility, gold continues to be the safer and more stable option for investors focused on wealth preservation.
“In such uncertain phases, maintaining gold as the core precious metal allocation may offer better stability, while silver can be used selectively as a tactical exposure. A balanced approach, rather than choosing one over the other, is often more suitable for long-term investors,” Kalantri said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
