Mumbai, February 1, 2026
Gold and silver futures on the Multi Commodity Exchange (MCX) experienced a significant decline on the day of the Union Budget 2026-27 presentation, reflecting intense selling pressure in the commodity markets.
Gold futures dropped by ₹7,653, or approximately 5%, settling at ₹1,42,000. Silver futures saw an even steeper fall of ₹22,648, declining over 7% to ₹2,69,277.
The special trading session on Sunday allowed commodity markets to react in real time to the budget announcements. Market participants cited budget-related uncertainty, global market signals, and widespread profit booking a
The volatility follows sharp corrections in the previous week. Silver futures for the March 5 expiry contract had reached a lifetime high of ₹4,20,048 per kg on Thursday before crashing nearly 30% the next day to ₹2,91,922 per kg.
On the pre-budget Sunday session, silver extended losses by around 9%, or more than ₹26,273, to ₹2,65,652 per kg in some contracts.
Gold followed a similar pattern. The April 2 expiry contract hit a record ₹1,93,096 per 10 grams on Thursday, then fell sharply by ₹42,247 to ₹1,50,849 the following day — a drop of about 17%. Further heavy selling on budget day pushed it lower by over 8.8%, or ₹13,711, to ₹1,38,634 in certain quotes.
Market experts had anticipated downside risks heading into the budget, noting weakened investor sentiment after the prior week’s steep corrections. The opening of futures trading confirmed these expectations with immediate aggressive selling.
