Gold & Silver Rates Today: Prices Fall Sharply on Union Budget 2026 Day
New Delhi, Feb 1, 2026: On the day of the Union Budget 2026–27, gold and silver prices extended their declines, dipping significantly across domestic markets as traders reacted to budget expectations and broader market forces. Precious metals, which had seen strong gains earlier this year, slipped amid heavy sell-offs and a strengthening US dollar, according to market sources.
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Market Overview
Gold and silver, which had surged in recent weeks, faced renewed selling pressure on Sunday as the Finance Minister presented the Union Budget 2026–27 in Parliament. Domestic futures trading saw both metals decline sharply, reflecting profit-booking and risk-off sentiment among investors.
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A special session of the Multi Commodity Exchange (MCX) held on Sunday recorded gold futures sliding roughly 2%, while silver plunged nearly 9% at one point during trading, reflecting accelerated liquidation.
Why Are Prices Falling?
Analysts noted a few key drivers behind the pullback in precious metal prices:
• Profit-booking after recent rapid gains in gold and silver, forcing traders to lock in gains.
• Liquidation of long positions as traders reacted to global cues and budget anticipation.
• A stronger US dollar, which typically weakens dollar-denominated commodities like gold and silver.
Despite the near-term correction, market experts believe the medium- and long-term outlook for bullion remains supported by macroeconomic trends and continued safe-haven demand.
Live Updates on Prices
Here’s a snapshot of how prices were moving during today’s trading session:
• 24-carat gold (MCX) fell to approximately ₹1,36,185 per 10 grams after opening higher earlier in the day.
• Silver (MCX) prices also saw significant pressure, trading well below recent highs.
Please note: these levels reflect intra-day movements; final closing prices will be available after markets fully close.
Industry Reaction
Leaders in the gems and jewellery sector welcomed aspects of the Budget that support growth and ease doing business, especially stable import duty measures and reforms targeting export facilitation. According to industry representatives, these initiatives could strengthen long-term demand in the sector.
Global Context
International markets also weighed on sentiment, with bullion prices weakening on global exchanges due to expectations of tighter monetary policy and cautious positioning ahead of major economic data releases. A stronger dollar in overseas markets added pressure on domestic rates.