Gold and silver prices dropped sharply across India on Saturday. The fall came as markets reacted to Budget Day developments.
Gold and silver prices declined across Indian bullion markets on February 1, during trading hours on Budget Day. The fall was seen in both wholesale and retail markets, following a sharp correction in recent sessions.
Prices See Sudden Correction
Retail gold prices fell after remaining near record highs last week. Silver prices also dropped sharply, showing heavy selling pressure. Traders said the fall followed profit booking after a strong rally in January.
Market Volatility on Budget Day
The decline came as financial markets remained volatile during the Union Budget presentation. Investors stayed cautious due to global cues, currency movement, and expectations around fiscal policy.
Global Factors at Play
Analysts noted that global gold and silver prices also weakened. A stronger US dollar and rising bond yields added pressure on precious metals.
Situation Still Developing
Market experts said prices may remain volatile in the near term. Final price direction will depend on global markets and post-budget clarity.
| Metal | Recent Trend | Market Reaction |
|---|---|---|
| Gold | Sharp fall | Profit booking |
| Silver | Steep decline | High volatility |
| Market | Budget Day | Cautious trading |
Latest Retail Prices In India
Retail gold and silver prices have eased from late January peaks. In many cities, gold is trading significantly lower than its recent all-time highs, and silver has also seen steep drops. Traders point to widespread profit booking after strong past gains and global triggers, including currency movements.
Price Movement Table (Retail Rates)
| Date | Gold (24K, ₹/10g) | Silver (₹/kg) |
|---|---|---|
| 26-Jan-26 | ~₹1,80,000+ | ~₹4,20,000+ |
| 30-Jan-26 | ~₹1,80,779 (high) | ~₹4,20,048 (high) |
| 31-Jan-26 | ~₹1,54,157 | ~₹3,32,002 |
| 01-Feb-26 | ~₹1,47,000 – ₹1,60,580 | ~₹2,74,000 – ₹3,50,000 |
Previous Price Crashes And Context
- Earlier in the week, gold and silver experienced one of the largest short-term pullbacks in recent years:
- On 30 January 2026, gold futures saw a steep one-day decline of about 9–12%, the largest percentage fall in many years.
- Silver saw a record one-day drop, with futures falling over 15–27%, marking one of the most extreme daily moves in recent memory.
- These moves occurred after both metals had reached lifetime highs only days earlier, prompting strong profit-booking by traders.
- The severity of recent drops echoes past global sell-offs, such as the 1980 “Silver Thursday” crash, in which silver prices collapsed amid extreme speculative positioning and forced sell-offs in futures markets.
Why Prices Have Fallen
- Market observers attribute the fall to several confirmed factors:
- Profit Booking: After sustained price rises, traders sold positions to lock in gains.
- Stronger US Dollar: As indian Rupee falls, the dollar makes non-yielding assets like gold less attractive.
- Market Volatility: Global economic cues and expectations around fiscal policy contributed to selling pressure.
What Happens Next
Bullion traders are expected to watch global price signals and currency movement closely. Any further policy updates or global economic data may impact prices in the coming days.
EDITOR’S NOTE
This report is based on verified market data and industry updates available at the time of publishing. Prices may change as markets continue to trade.
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