Gold silver prices witnessed a sharp sell-off ahead of the Union Budget 2026 presentation, rattling commodity markets and triggering lower circuit limits in futures trading. The sudden decline came as investors booked profits and remained cautious before Finance Minister Nirmala Sitharaman’s budget speech, which is closely watched for cues on taxation, import duties, and economic policy affecting precious metals.
The steep fall marked a reversal from recent record highs, with both metals losing significant value over the weekend amid heightened volatility in domestic and global markets.
Gold prices see sharp volatility
Gold prices experienced intense fluctuations in the commodity market on Saturday, plunging nearly 5.4 per cent to ₹1,69,470 per 10 grams for 24-carat gold. The decline reflected heavy selling pressure as traders reduced exposure ahead of key policy announcements.
In the international market, gold prices also weakened substantially, falling more than 9 per cent to USD 4,887 per ounce, adding to bearish sentiment in domestic trading.
Silver prices extend losses for second day
Silver prices recorded even steeper losses, sliding nearly 19 per cent in the national capital. According to the All India Sarafa Association, silver fell by 18.85 per cent, or ₹72,500, to ₹3,12,000 per kilogram, inclusive of all taxes.
The sharp drop marked the second consecutive day of heavy losses, erasing a large portion of the metal’s record gains seen earlier in the week.
Investor caution ahead of Budget speech
Market participants attributed the sharp correction in gold and silver prices to profit booking and uncertainty ahead of the Union Budget 2026. Any changes related to customs duties, capital gains tax, or broader fiscal measures could influence demand and pricing trends for precious metals in the coming months.
Also read: Union Budget 2026: What to Expect from Taxes, Customs, and Debt Management