Chinese New Year 2026: Gold and silver prices extended their decline on Tuesday, February 17, amid thin trade as the closure of key Asian markets for the Lunar New Year drained liquidity from the global bullion trade. Reduced participation from China and other major regional hubs coincided with easing geopolitical tensions and a stronger U.S. dollar, intensifying pressure on precious metals.
With the Chinese new year today, Mainland China, Hong Kong, Singapore, Taiwan and South Korea stock markets are shut for the Lunar New Year holidays, sharply limiting demand for the precious metals. China’s absence is especially significant given its dominant role in global gold trading and its growing influence over silver, both as an industrial metal and an investment asset.
Why Chinese market closure matters?
Chinese exchanges have evolved into the single largest source of incremental demand, leverage and speculative activity in precious metals. The Shanghai Gold Exchange (SGE) and the Shanghai Futures Exchange (SHFE) play a critical role in price discovery, especially during periods of heightened volatility.
Aamir Makda, Commodity and Currency Analyst at Choice Broking, explained how the Lunar New Year shutdown creates near-term stress in bullion markets.
“The closure of the Shanghai Gold Exchange (SGE) and the Shanghai Futures Exchange (SHFE) for the Lunar New Year from February 16 to February 24, 2026, significantly impacts the global precious metals market. This shutdown creates a “liquidity vacuum,” with reduced global liquidity for gold and silver, leading to susceptibility to price volatility due to the absence of the “Shanghai Premium.”
Silver’s market is particularly affected due to China’s role in industrial demand, leading to a notable price drop as trading halts. Upon reopening, a “Sentiment Reset” is anticipated, with potential price adjustments as SGE catches up with global trends and retail demand from China is assessed, added Makda. He further noted, “Despite the temporary sell-off, we view it as a healthy correction, supported by ongoing trends including central bank diversification from the US dollar, rising debt concerns affecting fiat confidence, shifts in monetary policy, and geopolitical risks.”
China, on December 30, had tightened controls on silver exports, broadening restrictions on a metal that is critical to U.S. industrial and defence supply chains. This policy move has increased sensitivity in silver prices, especially when Chinese supply or demand visibility weakens.
Gold, Silver price today
On domestic exchanges, the impact was immediate. MCX silver fell 2% to an intraday low of ₹2,35,206 per kg, while MCX gold slipped 0.7% to ₹1,53,550 per 10 grams. Globally, spot gold declined 1.9% to $4,898.53 per ounce by 0622 GMT after touching $4,862, its lowest level in more than a week. U.S. gold futures for April delivery dropped 2.6% to $4,917.70 per ounce. Spot silver slid 2.8% to $74.46 per ounce, after plunging more than 5% earlier in the session.
Most Asian markets closed today
Beyond mainland China, multiple Asian exchanges remain closed or partially shut, further draining market depth. The Shanghai Stock Exchange and Shenzhen Stock Exchange are closed from February 16 to February 23, with trading resuming on February 24. Hong Kong operated a half-day session on February 16 before closing from February 17 to February 19 and reopening on February 20.
Singapore Exchange followed a similar pattern, running a half-day session on February 16 and remaining shut on February 17 and February 18. Taiwan’s stock exchange is observing an extended holiday from February 15 to February 20 due to calendar adjustments. Bursa Malaysia is closed on February 17 and February 18, reopening on February 19.
Some markets remain operational. Japan’s Tokyo Stock Exchange and the Korea Exchange continue normal trading, while Indonesia’s stock exchange is closed on February 16 for a collective leave day and again on February 17 for the Lunar New Year holiday.
Why gold and silver fell today—and what comes next
Beyond holiday-related liquidity issues, bullion prices were weighed down by easing geopolitical risks and U.S. dollar strength. Comments from U.S. President Donald Trump indicating indirect involvement in upcoming U.S.–Iran nuclear talks in Geneva, along with fresh Ukraine–Russia discussions, improved risk sentiment and reduced immediate safe-haven demand.
Attention has now shifted to the minutes of the U.S. Federal Reserve’s January meeting, which could offer clearer guidance on interest rates. Market expectations continue to point to a possible first rate cut in June, keeping the medium-term outlook supportive despite short-term corrections.
Hareesh V, Head of Commodity Research at Geojit Investments Limited, believes gold’s broader structure remains intact.
“Gold prices have turned choppy following sharp swings, but the broader structure still appears constructive. Despite volatility from Fed expectations and dollar strength, gold holds above key $5,000 levels, supported by central-bank buying, geopolitical risks, and a positive long-term outlook.”
From a technical perspective, analysts expect consolidation rather than a trend reversal.
Renisha Chainani, Head of Research at Augmont, outlined near-term trading ranges.
“Gold is likely to consolidate between $4,650 and $5,100, roughly ₹147,000 to ₹160,000, while silver may trade weak between $70 and $90, around ₹225,000 to ₹285,000. A buy-on-dips, sell-on-rallies approach remains prudent.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
