Bullion Update: Gold Resilience vs. Silver’s “Falling Knife” Scenario on Feb 16, 2026

The Indian bullion market presents a tale of two metals this Monday morning. While gold prices remain steady—consolidating after a volatile start to the month—silver has entered a state of “price capitulation.”

Add businessleague.in as a Preferred Source

As of February 16, 2026, gold is trading near the ₹1.57 lakh (per 10g) mark, buoyed by safe-haven demand amidst global inflationary concerns. Conversely, silver has breached critical support levels, sliding toward the ₹2.74 lakh per kg zone.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

Bullion Breakdown: Gold Holds the Line

Gold prices have corrected from their January peaks but are currently finding strong support.

• Stable Demand: Despite a marginal dip of ₹1 per gram from yesterday, the market sentiment remains cautiously bullish.

• The “Chennai Premium”: Southern markets, led by Chennai, continue to trade at a significant premium compared to Delhi and Mumbai due to higher local physical demand.

• Inflation Hedge: Investors are rotating back into gold as a protective asset against a jittery global economy.

City-Wise Gold Rates (Per 10 Grams)

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

The Silver Slump: A 2026 Low

Silver is currently the underperformer of the year. After peaking at ₹3.50 lakh per kg on February 1, it has entered a downward spiral, losing over 21% of its value in just over two weeks.

• Current Price: The national average for silver 999 stands at ₹2,74,900 per kg.

• Selling Pressure: Analysts point to a “short buildup” on the MCX, where traders are betting on further declines despite industrial demand remaining structurally sound.

• The “Falling Knife”: Financial experts warn retail buyers against catching the “falling knife,” suggesting a phased accumulation strategy rather than bulk purchases.

Investigative Angle: The Growing Gold-Silver Ratio

Our tracking reveals a significant widening in the Gold-Silver Ratio.

The Strategy: Historically, when this ratio stretches to extreme levels, silver eventually stages a violent recovery. However, with the CME Group recently raising margins on silver futures to 18%, many leveraged traders have been forced to liquidate. This “forced selling” is what pushed silver below the psychological ₹2.75 lakh barrier this morning. Until industrial orders from the solar and 5G sectors pick up, silver may continue to trade under pressure.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

[SILVER RATES ACROSS INDIA (PER KG)]

Next Steps

If you are planning a jewellery purchase for the upcoming wedding season, you should lock in gold rates now, as the current consolidation is expected to precede a breakout toward ₹1.60 lakh. Furthermore, for silver investors, you should wait for a daily close above ₹2.80 lakh before committing new capital to ensure the downtrend has truly exhausted itself.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

End….

Add businessleague.in as a Preferred Source