Gold, silver prices crash today as MCX futures hit lower circuit before Union Budget 2026. Know why prices fell, latest gold rates, and impact.
New Delhi: Gold and silver prices fell sharply on February 1, 2026, hitting the lower circuit limits on the Multi Commodity Exchange (MCX) during a special Sunday trading session. This trading session was held on the same day as the Union Budget 2026, which is being presented at 11 AM IST.
This sharp fall continues a major sell-off that started on January 30, leading many people to search online for terms like gold silver prices today February 1 2026, why gold silver crash Budget 2026, and MCX lower circuit gold silver. Below is a full and simple explanation of the price fall, reasons behind it, latest rates, and how it is affecting markets, based on official data available as of February 1, 2026.
Sharp Fall in Gold and Silver Prices: Latest MCX Rates
On February 1, 2026, gold and silver futures on MCX opened with heavy losses and immediately hit the 6% lower circuit due to strong selling pressure.
• MCX Gold April Futures: Opened at ₹1,43,205 per 10 grams, down ₹9,140 or 6% from the previous closing price, hitting the lower circuit.
• MCX Silver March Futures: Opened at ₹2,74,410 per kg, down ₹17,515 or 6%, also hitting the lower circuit. Losses later increased to 9% during the day, with prices falling by ₹26,273 to ₹2,65,652 per kg.
Spot Prices from Previous Close (January 31, Delhi – All India Sarafa Association)
• Gold (99.9% purity): ₹1,65,500 per 10 grams, down ₹3,500 or 2.07%
• Silver: ₹3,12,000 per kg, down ₹72,500 or 18.85%
Fall from Recent High Levels
• Gold: Fell from ₹1,83,000 on January 29 to current levels, a drop of around 22%
• Silver: Fell from ₹4,20,000 to current levels, a drop of around 37%
Why Did Gold and Silver Prices Fall So Sharply?
The sharp fall in prices is due to a mix of Indian and global reasons, making it one of the biggest corrections ever seen in precious metals.
• Profit Booking and Selling: Investors sold their holdings to book profits after prices rose strongly for nearly a year. Many traders closed their long positions.
• Stronger US Dollar: The US dollar became stronger globally, which usually makes gold and silver less attractive since they do not earn interest.
• Higher Margins: CME Group increased margin requirements for gold and silver futures on Comex, which forced traders to sell their positions.
• Budget Concerns: There are fears that the government may cut import duty on gold and silver, which is currently 15%, in the Union Budget 2026 to control high prices and support the jewellery industry.
• Global Market Volatility: International gold prices dropped from around $5,400 per ounce to the $5,250–$5,450 per ounce range.
On January 30, silver saw a shocking 37% fall in a single day, while gold dropped 12%, which is the biggest fall in more than ten years.
Market Reaction and Wider Impact
| Impact Area | Details |
|---|---|
| MCX Shares | Fell 10–15% and hit the lower circuit at ₹2,145.25 |
| Gold & Silver ETFs | Prices declined by 16–23% |
| Nippon India ETF Gold BeES | Fell 5.3% to ₹138.70 |
| Other ETFs | Tata Silver ETF and HDFC Gold ETF also saw heavy losses |
| Investor Sentiment | Markets remain nervous; experts see possible buying opportunities if Budget stabilizes prices, but warn of continued volatility |
| Jewellery Sector | High prices may reduce demand; Budget may address this through import duty changes |
Posts on X (formerly Twitter) also confirmed the lower circuit hit. PTI reported:
“Gold, silver prices hit lower circuit levels in futures trade ahead of Union Budget 2026–27 presentation.”
Historical Background and Expert Opinions
This fall is one of the worst corrections ever in gold and silver prices. Prices had reached record highs in January 2026 because of global tensions and strong demand.
Experts quoted by The Times of India, Economic Times, and Business Today say the fall happened mainly due to profit booking and a stronger US dollar. Traders are now closely watching the Union Budget announcements to see whether prices recover.
As the Budget speech continues, markets remain cautious. Stay tuned for post-Budget reactions and price movement updates.
Also Read on jabalpur today: Union Budget 2026 Live Updates: FM Nirmala Sitharaman Reaches Parliament Ahead of 11 AM Budget Speech, What to expect
