Gold and silver prices in India and global markets fell sharply around the presentation of the Union Budget 2026–27. Investors turned cautious and rushed to book profits ahead of the important budget announcement, leading to heavy selling in precious metals.
Prices Hit Lower Circuit on Budget Day
On February 1, 2026, both gold prices and silver prices faced strong selling pressure in futures trading. In India, gold futures dropped by nearly 6%, while silver futures also fell by around 6% on the MCX. At one stage, both metals even touched their lower circuit limits, showing how intense the market pressure was.
Sharp Fall After Record Highs
The sudden fall came after a strong rally in recent weeks. Silver prices had climbed to record levels before crashing sharply, while gold prices also slipped from their recent highs. Market experts said the fall was driven by profit-booking, rising global bond yields, and a stronger US dollar.
Heavy Losses Before Budget Day
Even before the budget was presented, precious metals were under pressure. On January 30, silver prices saw one of their biggest single-day falls in years, dropping by more than 30%. Gold prices also declined sharply during the same period.
Budget Expectations Added to Pressure
Traders were closely watching the Union Budget 2026 for possible changes in import duty, GST, or bullion policies. Many expected some relief measures. However, when the government kept customs duty on gold and silver unchanged, it disappointed sections of the market and added to selling pressure.
Why Gold and Silver Fell
Analysts say several factors worked together to push prices lower:
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Profit-booking after recent price rallies
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A stronger US dollar, making gold and silver costly globally
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Uncertainty over tax and duty changes
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Overall market volatility around Budget day
What This Means for Investors
The sharp fall shows that even so-called safe assets like gold and silver can be volatile in the short term. Experts say long-term fundamentals for precious metals remain strong, but investors should be prepared for sudden price swings during periods of policy uncertainty.
For now, market participants are advised to stay cautious and track global cues before making fresh investment decisions.
✅ Gold & Silver Price Table (India – MCX)
| Commodity | Contract | Price Before Budget | Price After Budget | Change |
|---|---|---|---|---|
| Gold | MCX April | ₹71,800 / 10g | ₹67,500 / 10g | ▼ ~6% |
| Silver | MCX March | ₹89,000 / kg | ₹83,500 / kg | ▼ ~6% |
Note: Prices are indicative MCX futures levels during high-volatility Budget trade.
✅ Why Gold and Silver Prices Fell After Budget 2026
Gold and silver came under heavy selling pressure as traders reacted to policy clarity in Budget 2026. Markets had already priced in expectations of duty or tax changes. When no major incentives were announced, investors rushed to book profits.
