08/01/2026
GOLD and SILVER PRICES got reduced again, should we Accumulate?
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Gold and silver prices continued to slide for the second consecutive session on Thursday, as markets reacted to expectations of the annual rebalancing of major global commodity indexes. The anticipated reshuffle is expected to trigger sizeable selling of precious metal futures, prompting investors and traders to pare exposure ahead of the event.
On the Multi Commodity Exchange (MCX), precious metals witnessed sharp pressure. Silver futures for March 2026 delivery tanked Rs 9,297, or 3.71%, to Rs 2,41,308 per kg by around 2:15 pm, marking one of the steepest single-day declines in recent sessions. Gold futures for February 2026 delivery were also in the red, slipping Rs 1,069, or 0.77%, to Rs 1,36,940 per 10 grams.
The ongoing decline is largely attributed to expectations that commodity index–tracking funds will reduce their allocations to gold and silver during their annual rebalancing exercise. These indexes, followed by large institutional investors and passive funds, periodically adjust their weightings based on set parameters such as production trends, liquidity, and price performance. Given the scale of assets linked to these benchmarks, even rule-based portfolio adjustments can result in heavy selling pressure in futures markets.
