Gold, silver rates today: Gold and silver prices remain volatile this week amid thin trading during Lunar New Year holidays across China, South Korea and other Asian markets.
With China — a key physical and futures market — shut, global liquidity has thinned. Chinese exchanges have become major sources of incremental demand and leverage in precious metals, playing an increasingly influential role in price discovery alongside COMEX.
After falling for two days in a row, gold and silver prices jumped up to 3% in the domestic futures market on Wednesday, February 18.
Gold futures for April delivery on the MCX surged almost 1.2%, to ₹1,53,554 per 10 grams, while silver futures for March delivery climbed 3.41% to ₹2,38,564 per kg.
On the international front, spot gold rose 1.2% to $4,934.74 per ounce, recovering after a decline of more than 2% in the previous session. Meanwhile, spot silver advanced 3.2% to $75.79 per ounce, rebounding from a drop of over 5% on Tuesday.
How do Lunar New Year holidays impact gold and silver prices?
During China’s Lunar New Year holidays, gold and silver often witness lower participation, as major Asian exchanges—including those in Shanghai and Hong Kong—remain closed, creating a temporary liquidity vacuum, according to market experts.
“This reduced activity can amplify volatility, with prices sometimes dropping sharply due to weaker physical demand and fewer market makers. Historically, these pullbacks tend to be seasonal rather than structural, with prices stabilising once Asian markets reopen and normal trading resumes,” said Hareesh V, Head of Commodity Research at Geojit Investments Limited.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that historically, this period triggers a price correction. Once the pre-holiday buying pressure from China ceases, traders who entered positions early often engage in profit-taking, leading to a downward shift in momentum.
With the Shanghai Futures Exchange closed for holidays, price discovery shifts to COMEX, where paper trading drives short-term moves. This matters because physical buffers are thin, highlighted Harshal Dasani, Business Head, INVasset PMS.
Shanghai Futures Exchange silver inventories have plunged from over 3,000 tonnes in 2021 to about 350 tonnes — marking the lowest levels seen in nearly a decade. At the same time, COMEX registered stocks sit near 90–95 million ounces, which is modest relative to open interest. In this low-liquidity setup, aggressive futures positioning can magnify downside volatility during China’s closure, opined Dasani.
Analysts further highlighted that silver is particularly vulnerable during this timeframe compared to gold because Chinese industrial production comes to a standstill during the festivities and due to larger above-ground stockpiles for the yellow metal.
Should you buy or avoid gold and silver during Lunar New Year 2026?
Against this backdrop, Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said that monitoring key support and resistance levels can help guide short-term decisions, but the holiday period is typically a time of lighter trading rather than strong directional trends.
Chainwala further recommended that investors avoid fresh buying during the Lunar New Year.
“For gold, selective buying can be considered around ₹146,000 per 10 grams, given its relative steadiness and supportive medium-term outlook. Silver should be avoided completely due to sharper volatility risks in the absence of Chinese physical flows,” she added.
Makda of Choice Broking also suggested that investors and traders avoid initiating new positions in bullion metals, noting that when the world’s largest physical buyers go offline, trading volumes thin out, often resulting in exaggerated price volatility and wider bid-ask spreads.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
