On February 2, 2026, gold and silver ETFs tumbled up to 20% as precious metals extended their steep decline. Gold futures fell nearly 26% from recent highs, while silver dropped 41%, driven by profit-booking, a stronger dollar, and higher margin requirements. Analysts advise caution, diversification, and staggered investments to manage volatility
India’s bullion-linked ETFs witnessed a dramatic correction on February 2, 2026, as gold and silver prices crashed further, triggering heavy losses for retail and institutional investors. The slump follows weeks of volatility after both metals hit record highs in January.
Gold futures with April expiry fell by ₹50,000 per 10 grams, while silver futures plunged by ₹1.7 lakh per kilogram, marking one of the sharpest reversals in recent memory. The decline spilled over into ETFs, with gold ETFs down 13% and silver ETFs tumbling 20%, reflecting investor panic and profit-booking.
Key Highlights:
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Gold Futures: Down 26% from recent highs; April contracts fell ₹50,000 per 10g.
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Silver Futures: Dropped 41% from peak; March contracts fell ₹1.7 lakh/kg.
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ETF Impact: Gold ETFs down 13%; silver ETFs down 20%.
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Drivers: Stronger US dollar, profit-booking, higher margin requirements.
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Investor Guidance: Analysts recommend diversification, staggered buying, and avoiding panic exits.
Experts caution that while the correction is steep, long-term fundamentals for precious metals remain intact, especially amid global economic uncertainty. Investors are advised to rebalance portfolios and adopt a disciplined approach rather than chasing short-term price swings.
Sources: Business Standard; Mint; Economic Times