On Monday, February 9, 2026, gold and silver exchange-traded funds (ETFs) in India staged a dramatic recovery, with some silver-linked funds surging as much as 12%. This “dip-buying” rally followed a week of extreme volatility and a historic price correction that had wiped nearly a third of silver’s value from its late-January peaks.
1. Performance Snapshot (Feb 9, 2026)
The rebound was led decisively by silver, as its higher “beta” (volatility) resulted in more aggressive gains compared to gold.
| Asset Class | Intraday Gain | Key Price Level (MCX) |
| Silver ETFs | 8% to 12% | Silver Futures: ~₹2,64,885/kg |
| Gold ETFs | 2% to 5% | Gold Futures: ~₹1,58,500/10g |
- Top Performers: The Axis Silver ETF led the pack with a 11.9% jump, followed closely by UTI Silver ETF and Groww Silver ETF, which both rose by approximately 11%.
- Gold’s Milder Rise: While silver saw double-digit gains, gold ETFs from Angel One, LIC MF, and Zerodha posted more modest but steady gains of around 5%.
2. Why the 12% Bounce?
Market analysts attribute the Monday surge to a “perfect alignment” of technical and macroeconomic factors:
- The “Dip-Buying” Frenzy: After silver crashed from its record high of ₹4,00,000 on January 29 to below ₹2,40,000 last week, institutional and retail investors viewed the ₹2.3L–₹2.4L zone as a “generational buying opportunity.”
- Weakening US Dollar: The US Dollar Index slipped to its lowest level since early February. Since gold and silver are priced in dollars, a weaker greenback makes them cheaper for Indian buyers, naturally driving up domestic demand.
- Geopolitical “Safe Haven”: Renewed tensions in the Middle East and the uncertainty surrounding the new US Federal Reserve Chair (Kevin Warsh) have reinforced the role of precious metals as essential portfolio hedges.
- Japan’s Election Impact: The landslide victory of Prime Minister Sanae Takaichi in Japan has fueled expectations of a “loose” fiscal policy, which typically supports global bullion prices.
3. The Context: A “V-Shaped” Recovery?
The 12% bounce is significant because it comes on the heels of the worst silver crash in 15 years.
- The Correction: On January 30-31, silver delivered a stunning reversal, plunging 27% in a single day after the CME Group raised margin requirements, forcing leveraged traders to liquidate.
- Circuit Limits: To prevent a total collapse, the BSE and NSE had recently imposed a 20% circuit limit on precious metal ETFs. Monday’s 12% gain tested these new volatility buffers but stayed within the permitted trading band.
4. Expert Outlook: “Is the Worst Over?”
While the bounce is strong, experts from Geojit and Ventura Securities suggest a “calibrated” approach:
- Volatility to Persist: Traders are closely watching this week’s US jobs report (Wednesday) and inflation data (Friday) for signs of the next major move.
- Support Levels: Analysts see strong support at $4,900/oz for gold and $72/oz for silver. A decisive break above $80/oz for silver would signal that the bull run has officially resumed.
- The “Silver Edge”: Despite the recent crash, Silver ETFs have still delivered a staggering 62% XIRR (Internal Rate of Return) since 2022, far outpacing gold’s 42%.
Conclusion: Tactical Re-entry
Monday’s 12% surge suggests that the “panic selling” phase has transitioned into a “value-seeking” phase. For long-term investors, the advice remains to use SIPs (Systematic Investment Plans) for silver to manage its inherent volatility, while keeping gold as the “core defensive anchor” of the portfolio.
