Gold and Silver Price Crash: Why Precious Metals Tanked 2% Today

Synopsis: Gold and silver prices witnessed a sharp “Double-Digit” meltdown on February 17, 2026, with MCX Gold dropping over ₹1,300 to settle near ₹1,56,590 per 10g. The “Zero-Minute” fact is that a strengthening US Dollar Index (DXY) at 97.14 and aggressive profit booking after a 20% January rally triggered a massive sell-off. Silver faced even more “brutal” carnage, crashing below the ₹2.68 Lakh/kg mark as thin Asian trade and speculative unwinding intensified.

On Tuesday, February 17, 2026, the “Safe Haven” shine of precious metals faded as both gold and silver tanked over 2% in early trade. MCX Gold Feb futures plunged by roughly ₹1,300, while Spot Gold slid below the psychologically critical $5,000/oz threshold. The correction is being viewed as a “Cyclical Reset” after the historic bull run of late January, where gold had touched record peaks above ₹1.80 Lakh/10g.

The sell-off has been broad-based, with silver prices in major Indian cities like Delhi and Mumbai hitting fresh monthly lows. Investors are pivoting toward “Risk-Off” strategies as global macro data suggests that the US Federal Reserve might maintain a hawkish stance for longer than previously anticipated.

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Why did Gold and Silver prices crash today?

The primary driver of the crash is the Stronger US Dollar. The Dollar Index (DXY) rose for the second consecutive session to 97.14, making dollar-denominated bullion more expensive for holders of other currencies like the Indian Rupee. Historically, a firm dollar exerts a “Gravity Pull” on precious metals, and today’s move was no exception.

Additionally, the “1-2-1” rule of market volatility was in full effect: one major macro trigger (US Dollar), two localized pressures (thin Asian trade and budget-related profit booking), and one massive technical breakdown. With the Chinese Lunar New Year holiday keeping major Asian buyers offline, thin liquidity across Asian trade amplified the price drops, turning mild profit booking into a systemic sell-off.

Precious Metals: Intraday Performance (Feb 17, 2026)

Commodity	Intraday Fall (₹)	Current Price	Percentage Change
MCX Gold (10g)	₹1,310 ↓	₹1,56,590	0.83% ↓
MCX Silver (1kg)	₹7,000 ↓	₹2,68,000	2.54% ↓
Spot Gold ($/oz)	$40.5 ↓	$4,948.60	0.81% ↓

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The “Analyst Consensus” on the Bullion Sell-off

Market experts suggest that the current correction is a “Healthy Shake-out” of speculative froth rather than a long-term trend reversal.

• Geojit Investments: Hareesh V. noted that “Dips are likely to attract buyers, supported by resilient safe-haven demand,” though he cautioned that trading might remain “two-way” until the US FOMC Minutes release on Wednesday.
• LKP Securities: Jateen Trivedi suggested a “Sell on Rise” strategy, identifying immediate resistance for gold at ₹1,58,500. He believes the metal could drop to ₹1,52,000 if it fails to reclaim its short-term moving averages.
• Technical View: Analysts highlight that the Gold-Silver Ratio has exploded to historic highs above 90:1, indicating that silver is currently “extremely undervalued” on paper compared to its yellow counterpart.

Also Read: Krishna Defence Share Price Surges: Why Q3 Profit Skyrocketed 164% and Revenue Hit Record Highs

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The Bottom Line

The 2% crash in gold and silver is a definitive signal that the “easy money” phase of the January rally has ended. For the Aam Aadmi investor, the focus remains on whether gold can sustain its ₹1,55,000 support level. If the US Core PCE data on Friday shows higher inflation, the metals could see a sharp “V-shaped” recovery.