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MCX, NSE withdraw additional margins on gold, silver futures

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The Multi Commodity Exchange of India (MCX) and the National Stock Exchange of India (NSE)  withdrew hefty additional margin requirements on gold and silver futures. The decision marks a pivot from the defensive crouch exchanges adopted earlier this month to curb excessive speculation.

India’s leading commodity exchanges move to lower the cost of trading precious metals, signaling that the recent bout of “blood and thunder” volatility in the bullion market may finally be cooling.

The rollback, effective Feb. 19, removes a 3% additional margin on gold contracts and a 7% surcharge on silver. For traders, the move is a welcome relief, effectively freeing up capital that had been locked away as collateral during a period of wild price swings.

A Wild Ride for Bullion

The extra margins were originally slapped on Feb. 4 as a circuit-breaker of sorts. At the start of the year, gold prices had surged nearly 35% in a frantic January rally, fueled by a cocktail of geopolitical jitters and institutional inflows.

However, the “everything-up” trade eventually hit a wall. Prices have since cooled by roughly 15%, allowing regulators to breathe a sigh of relief.

“The exchanges are essentially saying the fever has broken,” said one Mumbai-based commodities analyst. “By lowering the barrier to entry, they are inviting liquidity back into the pits, which had thinned out as trading costs spiked.”

The Margin Game

Margin requirements are the primary tool exchanges use to ensure traders can cover potential losses. When volatility spikes, exchanges hike these requirements to prevent a domino effect of defaults.

  • Gold: Traders no longer face the 3% “volatility tax.”
  • Silver: The more volatile sibling sees a significant 7% reduction in required upfront capital.
  • Market Impact: The move is expected to boost participation from both hedgers—jewelers looking to lock in prices—and speculative day traders.

Global Echoes

The maneuvers in Mumbai mirror a broader global recalibration. Markets worldwide have been struggling to find a “new normal” for precious metals. Late last month, the CME Group took similar action on Comex gold and silver futures following one of the steepest price declines in decades.

The stabilization in India is particularly crucial as the country remains one of the world’s largest consumers of physical gold. While the domestic market appears to be finding its footing, analysts warn that macroeconomic shifts—particularly regarding emerging market ETF inflows—could still trigger fresh turbulence.

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Jewellery That Honors Her Journey: Celebrating Women’s Day with Kalyan Jewellers

A curated Women’s Day edit by Kalyan Jewellers brings together bold diamond statements and heritage-inspired gold designs that celebrate women’s strength, individuality, and personal milestones.

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This Women’s Day, celebrate women who lead with strength, ambition, and unmistakable individuality. Curated by Kalyan Jewellers, this jewellery edit brings together bold diamond statements and heritage-inspired gold designs that reflect confidence, resilience, and self-assured elegance. Each piece is more than adornment it’s a tribute to her journey, her choices, and the power she wears with pride.

The Heritage Bloom Gold Pendant

A beautifully sculpted floral pendant in luminous yellow gold, enhanced with refined dual-tone detailing. Its layered petal form evokes growth, resilience, and enduring grace an ode to traditions that evolve with time. Thoughtfully crafted for versatility, this piece moves effortlessly from everyday elegance to meaningful occasions, making it perfect for the woman who cherishes her roots while confidently carving her own journey forward.

The Duality Grace Drop Necklace

A sleek, contemporary drop pendant crafted in warm rose gold, this design brings together the subtle glow of pearls and the refined sparkle of diamonds in a striking vertical silhouette. The diamond-accented bar flows seamlessly into a luminous pearl drop, creating a poised balance between softness and strength. Its elongated form flatters the neckline while retaining a clean, minimalist appeal making it equally suited for polished workwear and effortless evening looks. Representing harmony between grace and confidence, this necklace is designed for the woman who carries both with ease.

The Empowered Band Diamond Ring

A striking geometric ring crafted in luminous yellow gold, this design features a layered arrangement of diamonds set within a sculptural frame. The structured silhouette and clean lines lend it a bold, contemporary edge, while the clustered diamonds add depth and radiant brilliance. Designed to make a statement without overwhelming, this ring embodies confidence, resilience, and modern femininity perfect for women who lead with purpose, whether in everyday power dressing or standout occasions.

The Everyday Brilliance Diamond Tennis Bracelet

A continuous line of radiant diamonds set in yellow gold, this timeless tennis bracelet embodies understated luxury and enduring strength. Each precisely set stone creates a fluid rhythm of light, resting effortlessly on the wrist with refined elegance. Designed for seamless day-to-evening wear, it adds just the right touch of sparkle without ever overpowering the look. A symbol of quiet confidence and everyday victories, this piece celebrates the grace and resilience with which she moves through every role she owns.

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