New Delhi, February 2, 2026
The bullion market witnessed significant volatility on Monday, February 2, 2026, as gold and silver prices plunged sharply following proposals announced in Budget 2026. Changes related to customs duty on precious metals triggered heavy selling pressure, leading to one of the steepest single-day corrections in recent times.
Market participants reacted swiftly after clarity emerged on duty structures for coins, bars, and raw materials, resulting in a sharp correction across domestic bullion prices.
💰 Silver Prices Record Historic Fall
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Silver (per kg):
Prices dropped by nearly ₹1.50 lakh per kilogram, marking a historic decline.
Silver is currently trading in the range of ₹1,43,000 to ₹1,45,000 per kg in domestic markets.
Traders described the fall as unusually sharp, driven by budget-related adjustments and profit booking after recent record highs.
🪙 Gold Prices Slide to ₹1.43 Lakh
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Gold (24 Carat, per 10 grams):
Prices fell to around ₹1,43,000 per 10 grams, down sharply from recent peak levels.
Market analysts believe the correction may present a potential buying opportunity for long-term investors, especially those looking to accumulate gold after the recent rally.
⚖️ Why Did Gold and Silver Prices Fall?
According to market experts, the decline is primarily linked to customs duty changes announced in Budget 2026 by the Ministry of Finance.
Key factors include:
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Increase in customs duty on gold and silver coins and bars
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Relief on raw material imports, which reduced overall cost pressure
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Improved supply outlook following duty rationalization
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Short-term market reaction and profit booking after sharp rallies
The combined effect of these measures led to a sudden correction, despite higher duties on finished bullion products.
📊 Market Outlook
Bullion traders say prices may remain volatile in the near term as markets absorb the full impact of budget announcements. However, long-term fundamentals such as:
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Global economic uncertainty
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Central bank demand
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Inflation hedging
continue to support gold and silver as strategic assets.
