Gold, silver prices drop sharply ahead of Budget speech, hit lower circuit

Gold had witnessed sharp volatility in the commodity market on Saturday, falling around 5.4 per cent to ₹1,69,470 per 10 grams for 24 karat gold.

Updated on: Feb 1, 2026, 17:55:32 IST

By HT News Desk

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Gold and silver prices saw a sharp drop of up to 9 per cent in futures trade ahead of the Union Budget 2026 presentation by Finance Minister Nirmala Sitharaman on Sunday.

The safe-haven assets hit lower circuit levels in futures trade on Sunday. (AFP)

The was the second straight day that gold futures saw a rout, with the April contract declining from ₹13,711 to ₹1,38,634 per 10 grams.

Gold had witnessed sharp volatility in the commodity market on Saturday, falling around 5.4 per cent to ₹1,69,470 per 10 grams for 24 karat gold. In the international market, prices of gold declined by over 9 per cent to USD 4,887 per ounce.

Meanwhile, silver prices dropped 19 per cent to ₹3.12 lakh per kg in the national capital on Saturday.

Follow fluctuations in gold, silver rates here

According to the All India Sarafa Association, silver saw a sharp drop of 18.85 per cent ( ₹72,500) to ₹3,12,000 per kilogram (inclusive of all taxes), thus seeing a second day of heavy losses which wiped out much of this week's record gains, PTI news agency reported.

Gold prices also slid ₹3,500, or 2.07 per cent to ₹1,65,500 per 10 grams (inclusive of all taxes).

Gold, silver prices hit record gains this week

On Thursday, silver touched a record of ₹4,04,500 per kg before falling 15 per cent in the previous session.

Meanwhile, gold made record gains of ₹1,83,000 per 10 grams on Thursday before collapsing 7.6 per cent to ₹1,69,000 per 10 grams in the previous trade.

Gold prices had risen by 20.2 per cent or ₹27,800, from ₹1,37,700 per 10 grams recorded at the end of last year.

Both metals also crashed in global markets, with spot silver slumping USD 31.44, or 27.07 per cent to close at USD 84.70 per ounce. This was after spot silver plunged 36 per cent intraday to USD 73.30 per ounce, while gold prices slid by USD 530.53, or 9.83 per cent, and settled at USD 4,865.35 per ounce.

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HT News Desk
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