Metals melt: Gold, silver, copper take a big hit; here's the reason

New Delhi (The Uttam Hindu): Key metals like gold, silver, and copper are seeing significant declines in the final trading session of the year. This is attributed to increased margins imposed by exchanges, which now require traders to make higher upfront payments to open positions in these precious metals.

According to reports, the Chicago Mercantile Exchange has raised the margin requirement for the March 2026 silver futures contract to $25,000, up from $20,000 previously. This is a key reason for the decline in silver prices.

Reports suggest that now a margin of 30 per cent will be required for silver, 9 per cent for gold, while 22-25 per cent will be required for platinum and palladium.

Precious metals like platinum and palladium are not traded on Indian exchanges.

At 1:38 pm on the Multi Commodity Exchange (MCX), gold for February 5, 2026, was trading 0.80 percent lower at ₹1,35,570. Silver for March 5, 2026, was down 5.20 percent at ₹2,37,950.

Copper contract for January 30, 2026, was down 2.93 per cent at Rs 1,298.15.

Along with futures, gold and silver prices are also falling in the spot market.

According to prices released by the India Bullion Jewellers Association (IBJA) at 12 noon, 24-carat gold is now priced at ₹133,099 per 10 grams, down about ₹1,500 from the previous close. Silver prices fell by ₹2,896 to ₹229,433 per kg, down from ₹232,329 per kg.

Gold and silver prices are released by IBJA twice a day – at 12 noon and 5 pm.