MUMBAI: Shares of Multi Commodity Exchange of India (MCX) gained as much as 2.8% in early trade on Thursday, February 19, after the exchange announced the withdrawal of additional margins on gold and silver futures contracts, effective from today [citation:4][citation:5]. The stock touched an intraday high of ₹2,436 per share, reflecting strong investor sentiment following the margin relief [citation:4].
Margin withdrawal details
The Multi Commodity Exchange of India (MCX) and the National Stock Exchange of India (NSE) have withdrawn the additional margins imposed on gold and silver futures contracts, effective February 19, 2026 [citation:1]. The exchanges removed the 3% additional margin on all gold futures contracts and the 7% additional margin on all silver futures contracts that were introduced earlier this month [citation:1][citation:5].
The additional margins were initially levied on February 5 as risk management measures following sharp price movements in the bullion market. MCX had imposed a 1% margin on gold futures and 4.5% on silver futures, followed by an additional 2% on gold and 2.5% on silver from February 6 [citation:5]. With the latest circular, these extra margins have been completely rolled back, easing trading costs for market participants [citation:1][citation:3].
Bullion prices rally after margin cut
- Gold margin removed: 3% additional margin on all gold futures contracts withdrawn [citation:1]
- Silver margin removed: 7% additional margin on all silver futures contracts withdrawn [citation:1]
- Effective from: February 19, 2026 (beginning of day) [citation:1][citation:5]
- MCX share gain: up 2.8% to ₹2,416.30 in early trade [citation:4][citation:5]
- Gold futures: rallied 0.65% to ₹1,56,777 per 10 grams [citation:4]
- Silver futures: surged 1.50% to ₹2,47,935 per kg [citation:4]
- Gold ETFs: up nearly 2%, Silver ETFs up 4% [citation:3]
Why margins were removed
The additional margins were originally introduced as risk management measures following a record rally in gold and silver prices earlier this year. After the recent sharp correction seen in precious metals, both exchanges deemed it appropriate to roll back these measures [citation:1][citation:3]. The withdrawal coincides with a marginal dip in global bullion prices, providing relief to traders and investors in the domestic futures market [citation:1].
The removal of additional margins is expected to invite higher speculative participation in the market and increase intraday activity, pushing prices higher [citation:9].
Gold & Silver ETF performance
| ETF | Gain (%) |
|---|---|
| Groww Silver ETF | +4.02% |
| UTI Silver ETF | +3.93% |
| Motilal Oswal Gold ETF | +2.10% |
| SBI Gold ETF | +1.95% |
Expert view: What lies ahead
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, noted that the broader structure still reflects a weak undertone for gold with lower highs and lower lows in place. "A decisive break above $5,000 on CME would be required to negate the short-term weakness and revive bullish momentum. Immediate support is placed near ₹1,48,000, while resistance remains around ₹1,55,000" [citation:2][citation:3].
Aamir Makda, Commodity & Currency Analyst at Choice Broking, highlighted that the week-long closure of major hubs like the Shanghai Gold Exchange for the Lunar New Year creates a liquidity vacuum, often resulting in exaggerated price volatility. "With this perspective, traders are advised to avoid taking large positions in bullion during this period" [citation:3].
Global cues
Internationally, gold prices hovered around $4,960-4,988 per ounce, while silver traded near $76-77 per ounce [citation:1][citation:6]. Safe-haven demand remained supported by escalating friction between US and Iran, particularly concerns around maritime security in the Strait of Hormuz, alongside stalled nuclear negotiations and persistent uncertainty from the Russia–Ukraine conflict [citation:9].
Fed minutes revealed that some officials prefer further tightening if inflation stays sticky while others signaled potential easing later in the year. The possibility of higher-for-longer rates lifted the dollar and Treasury yields, capping bullion gains [citation:9].
Key takeaways
- MCX, NSE withdraw additional margins – 3% on gold, 7% on silver futures effective Feb 19 [citation:1]
- MCX shares gain 2.8% – stock rallies to ₹2,416 on easing trading costs [citation:4][citation:5]
- Gold futures up 0.65% – April contract at ₹1,56,777 per 10 grams [citation:4]
- Silver futures up 1.50% – March contract at ₹2,47,935 per kg [citation:4]
- ETFs rally – Silver ETFs up 4%, Gold ETFs up 2% [citation:3]
- Margins were originally imposed on Feb 5 after sharp price movements [citation:1][citation:5]
Disclaimer: This report is based on live market data and exchange circulars. Prices and stock values are subject to market risks. Please consult your financial advisor before making investment decisions.