MCX Sees Gold, Silver Prices Slide Ahead of Union Budget 2026

MCX records a sharp weekend decline in bullion prices

Gold and silver prices posted a steep fall on the Multi-Commodity Exchange (MCX) on Sunday, sliding nine percent each and extending a severe two-day sell-off in precious metals. The decline came hours ahead of the Union Budget 2026 presentation, adding to uncertainty in an already volatile market.

The correction followed a sharper-than-expected global downturn that unfolded after Indian equity markets had closed for the weekend, resulting in a wide gap-down opening when MCX trading resumed.

Domestic prices mirror global collapse

On MCX, gold dropped by ₹13,711 to ₹1,38,634 per 10 grams, while silver fell by ₹26,273 to ₹2,65,652 per kilogram. The losses were deeper than the six percent decline seen earlier in the session.

Silver had fallen as much as 37 percent intraday on Friday, while global spot gold prices had plunged 12 percent in a single session. The gold decline was the steepest since the early 1980s, and the silver fall marked the sharpest on record.

Exchange-traded funds tracking bullion also faced heavy pressure, after losing between 15 and 20 percent on Friday. MCX shares opened nine percent lower as volatility linked to the commodities rout spilled into exchange-linked stocks.

Budget focus sharpens on import duty signals

The timing of the crash has intensified scrutiny of the Union Budget, with traders watching closely for changes in bullion import duties. Gold and silver bars currently attract about six percent basic customs duty and three percent GST, taking the total tax incidence to roughly nine percent.

This compares with earlier years when import duty was close to 15 percent, a period marked by large-scale smuggling. Market participants are now weighing the possibility of a duty cut from six percent to four percent.

If global prices remain stable, such a move could lower domestic gold prices by ₹2,000–₹3,000 per 10 grams and reduce silver prices by around ₹6,000 per kilogram. Jewellers are seeking relief to revive demand, while investors are looking for clarity after extreme price swings. Broader policy signals from the Budget framework, outlined earlier in the government’s three-kartavya approach, are also being tracked by the market.

Global triggers and market commentary

Choice Wealth attributed the ETF collapse largely to profit booking after record highs on Thursday. It said global risk-off sentiment followed reports of a hawkish Federal Reserve chair pick by President Donald Trump, which strengthened the dollar and pressured overbought metals.

PL Wealth noted that silver’s year-long rally was driven by safe-haven demand, supply tightness, and rising industrial use in solar, electronics, and manufacturing. It pointed to silver’s historical volatility of 25–35 percent to explain the scale of the correction and advised staggered investment approaches.

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