Gold, silver: MCX, NSE withdraw additional margins on gold, silver futures after sharp price correction

The Multi-Commodity Exchange of India (MCX) and the National Stock Exchange (NSE) have withdrawn the additional margins imposed on gold and silver futures earlier this month to curb excessive volatility. MCX said the extra margin of 3 per cent on gold futures contracts (across all variants) and 7 per cent on silver futures contracts (all variants) will be withdrawn with effect from Thursday. The exchange had imposed the higher margins in early February after sharp and unusual price swings in the precious metals.

In a separate statement, NSE said the additional margin of 3 per cent on gold futures and 7 per cent on silver futures, introduced through a circular dated February 4, will be removed from February 19.

Earlier this month, the Multi Commodity Exchange Clearing Corporation (MCXCCL) had tightened risk controls by levying additional margins on gold and silver futures. Citing a periodic review of the adequacy of risk management measures and the need to mitigate systemic risk, MCXCCL imposed an additional margin of 4.5 per cent on silver futures contracts and 1 per cent on gold futures contracts, effective February 5.

This was followed by a further increase in margins from February 6, with an additional 2.5 per cent on silver futures and 2 per cent on gold futures, over and above the margins levied a day earlier.

Price correction

The withdrawal of additional margins comes amid a sharp correction in precious metal prices. Gold prices have fallen by around 4-5 per cent from their February peak. After a strong rally through late 2025 and January, domestic gold prices peaked at about Rs 1,62,000 per 10 grams before sliding to around Rs 1,53,550 per 10 grams. International spot gold has also eased from levels above $5,100 an ounce to about $4,900 an ounce.

Silver prices have seen an even steeper decline. Silver futures on MCX have dropped by around 16–18 per cent over the past 30 days as of February 18. After touching a record high of Rs 4,20,000 per kg on January 29, silver contracts have witnessed a sharp sell-off. The March silver contract is currently trading at around Rs 2,43,622 per kg.

Internationally, silver prices on Comex have also corrected sharply, falling to about $75 an ounce from a peak of $120 an ounce recorded on January 30.