Gold, silver prices crash 6% ahead of Union Budget
Gold and silver prices took a sharp about 6% dive on February 1 during a special MCX trading session, right before the Union Budget.
Gold futures dropped by ₹9,140 to ₹1,43,205 per 10gm and silver fell by ₹17,515 to ₹2,74,410 per kilogram—both hitting their lower circuit limits.
Gold has lost ₹50,000 per 10gm
If you've been tracking gold or silver as an investment (or even just curious), this is a big deal: prices have been sliding for three sessions straight since peaking in January.
Gold has lost ₹50,000 per 10gm (that's about 26%).
Even Bandhan Silver ETF crashed nearly 19%, with around $5 trillion in combined global market value vanishing from the metals.
What caused the metals' massive drop?
The main culprits: heavy profit-taking after months of rapid price rises, plus global factors like a stronger US dollar and speculation over Fed leadership after President Donald Trump's nomination of Kevin Warsh to the Federal Reserve chair.
On top of that, CME Group hiked margin requirements for silver futures—amid heavy liquidation and increased volatility—which only made the drop steeper.