Editor’s Note
Precious metals are experiencing historic volatility, with silver posting its largest single-day drop in over four decades. This special trading session highlights the acute market sensitivity to fiscal policy announcements.
Significant volatility is being observed in gold and silver prices during the special MCX session for Budget 2026. Silver recently recorded its largest single-day decline since 1980, bringing its price down to ₹2.91 lakh per kg, while gold is trading around ₹1.49 lakh per 10 grams.
Market experts have highlighted several key reasons for this sharp decline. The most prominent factor is considered to be the strengthening of the US dollar globally, which has impacted the demand for gold in the international market. Additionally, the increase in trading margins by foreign exchanges forced traders to reduce their positions. Domestically, pre-budget uncertainty and large-scale profit-taking at high levels have put additional pressure on prices. The combined effect of these factors has also led to changes in market liquidity conditions.
A special session has been organized on MCX on February 1st, despite it being a Sunday, due to the budget. Historically, gold and silver prices have shown high volatility on budget days due to the possibility of changes in import duties. Market analysts believe that if the government makes any amendments to customs duties on precious metals, it will have a direct impact on domestic prices. Trading volume is expected to increase during the special session as traders adjust their strategies based on budget announcements.
According to commodity experts, the market is currently going through a consolidation phase. Gold at ₹1.49 lakh per 10 grams and silver at ₹2.91 lakh per kg are near significant psychological levels. The market’s direction will largely depend on global geopolitical conditions and upcoming monetary policy decisions by the US Federal Reserve. Experts also believe that this phase of volatility may continue until stability returns to the market.
In conclusion, this special session for Budget 2026 could prove to be a significant turning point for gold and silver. After the historic decline, the market is now searching for a new direction, where government policies and global economic indicators will play a crucial role.