Despite fears of import duty hikes, the Union Budget 2026 kept customs duties unchanged at 6% for gold and silver, leading to extreme intraday swings—gold dipped to around ₹1,36,000–1,48,000 per 10 grams on MCX, while silver crashed toward ₹2,65,000 per kg.
BY PC Bureau
JFebruary 1, 2026: Gold and silver prices in India experienced sharp declines leading up to and during the Budget day, following a massive rally in January 2026 that pushed both metals to record highs (gold around ₹1,83,000 per 10 grams and silver near ₹4,04,500–4,20,000 per kg). The sell-off intensified due to:
- Profit booking after months of steep gains.
- Global factors, including a stronger US dollar and broader market corrections.
- Budget-related uncertainty and “shock”, as traders anticipated potential changes to import duties on gold and silver (which were previously reduced to 6% in 2024/2025 to curb smuggling). Markets braced for hikes or adjustments, but the Budget ultimately kept customs duties unchanged for gold and silver bullion imports (remaining at 6%, including basic customs duty and cess).
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METALS IN A MELTDOWN!
Global prices crash-silver, copper
Profit booking accelerated in equity
Silver, Gold ETF fall in opening trade
Basket selling seen for 2nd day
No trade for Silver Bees today
Physical markets seeing redemption pressure/leverage impact
MCX removes margins but… pic.twitter.com/K10IpLbHZl— Sharad Dubey (@Sharad9Dubey) February 1, 2026
The Multi Commodity Exchange (MCX) held a special Sunday trading session for the Budget, leading to extreme volatility:
- Futures for both metals hit lower circuit limits (e.g., down up to 9% intraday).
- This extended a historic crash from late January/Friday sessions, where silver plunged nearly 19% in one day and gold fell over 2–7% in prior sessions.
Price Movements on/around February 1, 2026Prices showed wild swings, with partial recoveries in some sessions but overall downward pressure:
- Gold:
- MCX futures saw drops to around ₹1,36,000–1,43,000 per 10 grams intraday (down 6–9% at points).
- Spot/physical rates hovered around ₹1,65,000–1,69,000 per 10 grams for 24K in major cities (e.g., Delhi/Mumbai ~₹1,69,000–1,69,470), with some reports of per-gram rates at ₹16,058 (24K) or lower in stabilized retail.
- Silver:
- Crashed more severely, with futures down 9%+ (e.g., to ₹2,65,000–2,91,000 per kg in volatile sessions).
- Physical rates fell sharply (e.g., to ₹3,12,000–3,50,000 per kg in some updates), reflecting 18–30% drops from recent peaks in prior days.
These corrections came after strong monthly gains in January (gold up ~20%, silver up ~30%).Budget Impact on Precious MetalsThe Budget focused on other areas (e.g., tax rationalization, customs duty cuts on personal imports from 20% to 10%, exemptions for critical minerals/cancer drugs, and no major changes to gold/silver taxation or duties). No hikes or further cuts to precious metals import duties were announced, leading to some stabilization post-presentation but not reversing the profit-taking momentum.
