MCX Gold and Silver Prices Today: Precious Metals Crash on Profit Booking Ahead of Budget 2026

Gold and silver prices in India witnessed a sharp correction after days of record highs, keeping investors on edge ahead of the Union Budget 2026. After crashing on Friday, gold and silver rates remained largely flat over the weekend, while MCX gold and MCX silver futures saw heavy selling during the special Budget session on Sunday, February 1.

Gold And Silver Prices In India Today

In physical markets, gold prices across major metro cities hovered around ₹1,69,300 per 10 grams for 24-karat gold. Chennai continued to report the highest gold price at ₹1,73,010 per 10 grams. The latest rates came after gold reportedly fell by nearly ₹3,500 per 10 grams on Friday.

Silver prices also remained mostly unchanged over the weekend, with a marginal uptick from Saturday’s levels. Silver prices in Delhi, Mumbai and Pune were seen around ₹4,10,000 per kg, while Chennai reported the highest silver price at ₹4,18,900 per kg.

MCX Gold And MCX Silver See Sharp Fall

MCX gold and MCX silver futures witnessed a steep fall on Sunday morning as investors booked profits following a strong rally over the past year.

MCX gold April futures crashed nearly 6%, hitting the lower circuit. Prices fell by ₹40,757, or 22.2%, to an intraday low of ₹1,43,205 per 10 grams. MCX silver March futures also plunged around 6%, sliding by ₹1,25,483, or 31.4%, to ₹2,74,410 per kg.

Globally, gold prices were headed for their steepest daily fall since 1983, while silver was on track for its worst single-day decline on record, according to international reports.

Why Gold And Silver Prices Are Falling

There are three major reasons behind the sharp fall in gold and silver prices.

First, the CME Group announced a hike in margin requirements for Comex gold and silver futures to control high volatility. Higher margins increase trading costs and reduce speculative interest, leading to forced position unwinding.

Second, the US dollar strengthened sharply, with the dollar index rising nearly 1%. A stronger dollar makes gold and silver more expensive for overseas buyers, putting pressure on prices.

Third, expectations of a possible customs duty cut on gold and silver in Budget 2026 added to selling pressure. Market participants are speculating that a duty cut could boost jewellery demand but may lead to short-term downside in prices.

What Investors Should Watch Next

With the Union Budget 2026 set to be presented today, investors are closely tracking announcements related to import duties, fiscal policy and currency movements. Any clarity on customs duty changes could influence the next move in gold and silver prices.

Read more: Union Budget 2026: Who Are the Key Officials Working Behind the Scenes?

Conclusion

Gold and silver prices in India have entered a phase of sharp correction after a strong rally, driven by profit booking, margin hikes and a stronger dollar. MCX gold and MCX silver remain highly volatile as markets await key cues from Budget 2026. Investors should brace for continued price swings in the near term and track global developments closely.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.