Gold and Silver Prices Witness Sharp Decline on Union Budget 2026 Day
Gold prices experienced a significant downturn on Sunday, coinciding with the presentation of the Union Budget 2026-27 by Finance Minister Nirmala Sitharaman in Parliament. The precious metal's value on the Multi Commodity Exchange (MCX) dropped sharply, reflecting heightened market volatility and sustained selling pressure.
Gold Prices Plunge to Rs 1.36 Lakh per 10 Grams
The 24-carat gold on MCX fell to Rs 1,36,185 per 10 grams during the trading session. This marked a continuation of the declining trend observed in recent days. The session had opened at Rs 1,46,800 per 10 grams, indicating intense intra-day fluctuations and bearish sentiment among investors.
This recent crash follows a period of extreme volatility, with gold prices dropping approximately 5.4 per cent on Saturday to Rs 1,69,470 per 10 grams. Despite the sharp decline, it is noteworthy that gold had gained Rs 27,800, or 20.2 per cent, in January, rising from Rs 1,37,700 per 10 grams at the end of December 2025.
International Gold Markets Also Under Pressure
The downward trend was not limited to domestic markets. Internationally, gold prices declined by over 9 per cent to USD 4,887 per ounce. This global sell-off contributed to the bearish environment in Indian commodity exchanges, amplifying the impact of domestic factors such as the Union Budget announcements.
Silver Prices Crash Nearly 19% in Sharp Sell-Off
Silver prices mirrored the downturn in gold, experiencing a severe sell-off on Saturday. The precious metal plunged nearly 19 per cent to Rs 3.12 lakh per kilogram. This sharp decline came after a strong performance in January, where silver had risen by Rs 73,000, or 30.5 per cent, from Rs 2,39,000 per kg on December 31, 2025.
The simultaneous decline in both gold and silver prices highlights the broader market reaction to the Union Budget 2026-27. Investors and traders are closely monitoring the fiscal policies and economic measures outlined by the Finance Minister, which are influencing commodity market dynamics.
Market analysts attribute the volatility to a combination of factors, including budget-related uncertainties, global economic trends, and profit-booking after the significant gains recorded in January. The coming days will be crucial as the market digests the full implications of the Union Budget and adjusts to the new fiscal landscape.
