Editor’s Note
This article reports on significant declines in gold and silver prices on the MCX commodity exchange on Budget day, detailing the scale of the drop and the market context.
On Budget day, commodity market MCX witnessed another sharp decline in gold and silver prices. At opening, the price of 1 kg of silver broke by ₹27,000, while gold became cheaper by over ₹13,000.
Following last week’s sharp fall, gold and silver prices witnessed another strong crash on Sunday. Trading continued on the commodity market MCX along with the stock market on Budget day, and both precious metals plummeted at opening. The biggest shock came as soon as the market opened in silver prices. The price of 1 kg of silver suddenly broke by ₹27,000, causing panic among investors. Gold was also not spared from this decline, with a sharp drop of over ₹13,000 recorded in gold prices. On Sunday, ahead of the Central Budget 2026-27, gold and silver prices fell by up to 9 percent in futures trading.
Earlier last week, a massive crash was also seen in gold and silver prices. In a single day, silver became cheaper by nearly 30 percent, while gold slipped by almost 17 percent. According to experts, uncertainty related to the budget, global signals, and profit-booking pressure continue to weigh on precious metals.
Gold and silver had crashed badly on the last trading day of the previous week. Notably, just one day before the fall, on Thursday, silver made history by crossing the ₹4 lakh per kg level for the first time. Silver with a March 5 expiry had reached a lifetime high of ₹4,20,048, but the very next day it saw a sharp decline and the price broke by ₹1.28 lakh to ₹2,91,922 per kg. On Sunday, Budget day, the decline deepened. Silver became cheaper by nearly 9 percent or over ₹26,273, falling to ₹2,65,652 per kg.
Gold’s condition was similar. On MCX, 10 grams of 24-carat gold with an April 2 expiry, after reaching a historic level of ₹1,93,096 on Thursday, had crumbled and fallen to ₹1,50,849 with a decline of ₹42,247 per 10 grams. As trading began on Sunday, strong selling was seen again and gold slipped by over 8.80 percent. The price of 10 grams of gold fell by nearly ₹13,711 to ₹1,38,634.