Gold and Silver Price Crash: Massive Slump Following Union Budget 2026-27 Presentation

Gold and Silver Price Crash: Massive Slump Following Union Budget 2026-27 Presentation Gold, Silver Rate Today Crash 3-6% Post-Budget 2026 | State-Wise Rates Gold and Silver prices in India witness a historic freefall after the Union Budget 2026. 24K Gold drops by ₹9,050 per 10g, while Silver crashes by ₹50,000 per kg. Check live updates and state-wise prices.

Live Price Tracker: State-Wise Gold & Silver Rates (Feb 2, 2026)

Note: Prices are indicative and exclude GST, TCS, and making charges.

The Great Metals Meltdown: Post-Budget Volatility Shakes Markets

The Indian bullion market is witnessing one of its most turbulent phases in modern history. Following the presentation of the Union Budget 2026-27 by Finance Minister Nirmala Sitharaman on Sunday, gold and silver prices have entered a “death spiral,” losing significant value in just 48 hours.

As of Monday, February 2, 2026, gold prices in India continued their downward trajectory, trading at ₹1,43,321 per 10 grams, marking a sharp 3% decline in a single session. This follows an even more dramatic weekend where 24-carat gold on the MCX crashed from an opening of ₹1,46,800 to an intraday low of ₹1,36,185.

Silver Prices Crash 6%: A Record-Breaking Correction

If the gold market is in distress, the silver market is in a full-blown panic. Silver prices in India plummeted by ₹50,000 per kg today, bringing the retail price to ₹3,00,000 per kilogram. Over the last two sessions, silver has shed nearly ₹1.1 lakh from its record highs. This represents one of the steepest short-term corrections ever recorded in the Indian commodity market.

Why are Gold and Silver Prices Falling?

Several macroeconomic and geopolitical factors have converged to create this “perfect storm”:

1. The Union Budget 2026 Impact

Historically, the Union Budget often brings changes to import duties or tax structures for precious metals. The immediate reaction to FM Sitharaman’s announcements triggered heavy unwinding of long positions. While the specific duty cuts are being analyzed, the market sentiment shifted instantly toward “sell.”

2. The ‘Kevin Warsh’ Factor

In the United States, President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve Chair has sent shockwaves through global markets. Warsh is known as an “inflation hawk.” His potential leadership suggests that the Fed may pause or even reverse interest rate cuts. High-interest rates make non-yielding assets like gold less attractive to investors.

3. Easing Geopolitical Tensions

Gold is traditionally a “safe-haven” asset. With a perceived cooling of global conflicts and a shift toward diplomatic resolutions, the urgency for investors to park money in gold has diminished, leading to massive profit-booking.

4. Strengthening US Dollar

The US Dollar Index has seen a resurgence. Since gold is priced in dollars globally, a stronger greenback makes the metal more expensive for holders of other currencies, further dampening demand.

International Market Scenario: A 40-Year Record

The carnage isn’t limited to India. In the international markets, spot gold suffered its biggest intraday slide in four decades. Prices fell by over 12% at one point, slipping below the crucial $5,000 per ounce mark to trade around $4,703.27.

Silver’s international performance was even more volatile, plunging as much as 36% in intraday trading before settling near $80.28 per ounce. This “whipsaw” action has left global traders reeling, especially those who entered the market during the peak of the January rally.

Detailed Price Breakdown: February 2, 2026

For retail buyers and investors, here is the breakdown of the current costs:

• 24-Carat Gold (99.9% Purity): Retailing at ₹1,51,530 per 10 grams, down by ₹9,050 from the previous close.

• 22-Carat Gold (Jewelry Gold): Retailing at ₹1,38,900 per 10 grams, a decline of ₹8,300.

• 18-Carat Gold: Now priced at ₹1,13,650 per 10 grams, a drop of ₹6,790.

• Bulk Purchase (100g 24K): Now costs ₹15,15,300, reflecting a massive overnight drop of ₹90,500.

Investor Sentiment: Relief for Buyers, Pain for Early Investors

The continuous crash has elicited two very different reactions in India:

• For Buyers: Families preparing for the upcoming wedding season have expressed immense relief. After gold gained over 20% in January alone (rising from ₹1,37,700 to record highs), this correction provides a much-needed entry point.

• For Investors: Those who bought gold last week at the peak are facing significant “paper losses.” With the market having fallen over ₹2,73,000 per 100g in just three days, many short-term investors are seeing their margins wiped out.

Future Outlook: Will the Slide Continue?

According to the India Bullion and Jewelers Association Ltd. (IBJA), the outlook remains cautious. While the sharpest part of the correction might be over, the market is expected to trade “rangebound to slightly lower” in the coming days.

Traders are now awaiting key US economic indicators:

• ISM Manufacturing & Services Data

• Non-Farm Payrolls (NFP)

If the US labor market remains resilient, the Federal Reserve is likely to maintain its pause on rate cuts, which could keep gold prices under pressure.

Expert Tip: For retail consumers, experts suggest “staggered buying.” Instead of investing a lump sum, consider buying in small quantities as the market stabilizes post-budget.

Conclusion

The February 2026 crash will go down in history as one of the most volatile periods for precious metals. With silver down by ₹1.1 lakh from its peak and gold losing its luster momentarily, all eyes remain on the global central banks and the final fine print of the Indian Budget.

Stay tuned for live updates on Gold and Silver rates in your city.

Disclaimer: This information is based on various inputs from news agency.