Sun Feb 01 07:10:00 UTC 2026: ### Gold and Silver Prices Plunge Ahead of Union Budget 2026

The Story:
Gold and silver prices experienced a significant downturn in futures trading on Sunday, February 1, 2026, just ahead of the Union Budget for 2026-27. The plunge, reaching the lower circuit levels of 9%, is attributed to investors engaging in profit booking after a recent period of record-breaking rallies. This marks the second consecutive day of decline, with both gold and silver futures taking a substantial hit on the Multi Commodity Exchange (MCX). The Finance Minister, Nirmala Sitharaman, is set to present the FY27 budget in Parliament later in the day.

Key Points:

  • Gold futures (April contract) declined ₹13,711, or 9%, to ₹1,38,634 per 10 grams, reaching its lower circuit level on the MCX.
  • The previous session saw gold plunge ₹31,617, or 17.2%, to close at ₹1,52,345 per 10 grams, after peaking at ₹1,93,096 per 10 grams on Thursday, January 29, 2026.
  • Silver futures (March contract) nosedived ₹26,273, or 9%, to ₹2,65,652 per kilogram, also hitting its lower circuit level.
  • On Friday, January 30, 2026, silver slumped ₹1,07,968, or 27%, to close at ₹2,91,925 per kg, after reaching a record peak of ₹4,20,048 per kg on Thursday, January 29, 2026.
  • Traders attribute the price correction to aggressive unwinding of long positions amidst global market volatility and cautious sentiment leading up to the Union Budget presentation.
  • Global futures markets are closed on Sunday, February 1, 2026, due to a holiday.

Key Takeaways:

  • The sharp decline in gold and silver prices suggests heightened investor uncertainty regarding the upcoming Union Budget and its potential impact on the precious metals market.
  • The scale of the price drops, triggering lower circuit levels, indicates a significant shift in market sentiment from bullish to bearish in a very short timeframe.
  • Profit booking, spurred by recent record highs, appears to be a major catalyst for the correction, indicating that investors are realizing gains and reducing risk exposure.
  • Global market volatility is contributing to investor caution, likely amplifying the impact of domestic factors surrounding the Union Budget.
  • The market’s reaction highlights the sensitivity of gold and silver prices to government policies and broader economic conditions.

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