Multi Commodity Exchange of India (MCX) share price came under intense pressure during the special Budget session on Sunday, February 1, tumbling as much as 15% in intra-day trade. The sharp fall followed a heavy selloff in MCX silver contracts and lower circuit hits in MCX gold, marking the steepest single-day slide for the exchange’s stock in five years.
The MCX stock declined up to 15% to touch an intra-day low of ₹2,146.25. At this level, the counter stood nearly 21% below its record high of ₹2,706.00, which it had scaled on January 29, 2026. In contrast, the stock had earlier touched its 52-week low of ₹882.02 in March 2025.
Despite the sudden decline, the stock’s longer-term performance had been exceptionally strong, supported by the rally in precious metal prices in recent months. Over the past one year, the stock had surged 91%. It had advanced 45% in six months and 19% in three months. Over a five-year period, the stock had delivered multibagger returns of 591%.
Silver and gold rates hit lower circuits
Silver prices extended their steep losses on Sunday, February 1, hitting the 9% lower circuit as investors rushed to lock in profits amid a global selloff driven by a strengthening US dollar. Market sentiment was further weighed down after reports indicated that CME Group was raising margins on Comex gold and silver futures. Investors also remained cautious ahead of the Union Budget 2026.
On MCX, silver prices fell 9% to the lower circuit at ₹Rs 2,65,652 per kg. MCX gold prices also hit their 9% lower circuit at ₹₹1,36,185 per 10 grams.
The selloff had already intensified on Friday, January 30. Silver prices had crashed 19% to ₹3.12 lakh per kg, while gold prices had also declined to ₹₹1.65 lakh per 10 grams. This came immediately after silver had touched a record high of ₹4,04,500 per kg on Thursday, before witnessing a dramatic collapse on Friday.
Why the gold, silver price meltdown?
Commodity markets globally have remained highly volatile ever since US President Donald Trump nominated Kevin Warsh as the new Federal Reserve Chair. Market participants believe that his tenure could lead to a stronger US dollar, potentially reducing investor appetite for safe-haven assets such as gold and silver.
Although Warsh’s stance appeared to soften over recent months, as he aligned more closely with Trump’s push for lower interest rates and was seen advocating rate cuts, analysts believe he could revert to a more traditional policy stance if inflationary pressures resurface.
At the same time, Bloomberg reported that CME Group was increasing margins on Comex gold and silver futures following the steepest declines in prices seen in decades.
Gold margins are set to rise to 8% of the value of the underlying contract from the current 6% for non-heightened risk profiles. For heightened risk profiles, margins will increase to 8.8% from 6.6%.
Silver margins will climb to 15% from 11% for non-heightened risk profiles, while heightened risk profile margins will be raised to 16.5% from 12.1%. Margins on platinum and palladium futures are also set to be increased.
The combination of a stronger US dollar outlook, margin hikes, extreme price volatility, and Budget-related caution triggered heavy unwinding in precious metal positions, which in turn sharply impacted MCX shares during the trading session.
