Gold recovers Rs 9,500 per 10 gram intraday loss to end volatile Budget 2026 session in the green; silver flat

Domestic gold recovered losses of around Rs 9,500 per 10 gram, or nearly 7%, after touching the day’s low of Rs 1,38,634 per 10 gram, to settle at Rs 1,48,104. As gold futures opened with a gap-up, prices came under sharp pressure amid profit booking ahead of the Budget 2026 announcements. The correction on the MCX intensified as trading progressed, continuing Friday’s sharp correction. March silver futures ended flat at Rs 2,65,652 per kg on the MCX.

Sentiments were further dented as there was no major announcement for the domestic jewelery sector.

Amid a rise in gold and silver prices over the past year, the precious metals industry expected certain fiscal measures to provide relief to the sector. The relentless rise in the price of gold has put a dent in India’s traditional appetite for jewellery. According to a report by the World Gold Council (WGC), India’s jewelery consumption fell 24% year-on-year (year-on-year) to 430.5 tonnes in 2025, while the value of that demand rose to an unprecedented $49 billion.
Dr. Renisha Chainani, head of research at Augmont, said the bullion industry expected support to ease cost pressures from high gold and silver prices, including cuts in import duties on gold, cut and polished diamonds, colored gemstones and GST rationalization.It also sought simplified customs procedures, tax refund reform and policy steps to help position India as a global diamond trading center and boost exports and competitiveness, Chainani said.

The budget actually announced did not announce any major sector-specific tax cuts or reductions in import duties specifically for the gems and jewelery sector, she said.

Gold, silver price action

On Friday, silver staged a stunning reversal on MCX, falling up to 27% – or Rs 1,07,968 – in a day, marking the worst ever crash and taking prices back below the Rs 3 lakh mark, just a day after the metal rose to an all-time high of Rs 4 lakh.

Gold prices fell as much as 12% or Rs 20,514 in a single day on January 30, marking the worst one-day rout since March 2013 when prices on the MCX had fallen 9%.

“Selling pressure on the MCX increased today, with both metals hitting the lower circuits and falling 9% earlier in a brutal session, exacerbating Friday’s steep losses of 17% in gold and 27% in silver. Currently, gold is trading 5% lower after a modest intraday recovery, while silver is falling as traders now approach the Union Budget cautiously, wary of possible changes in import duties on precious metals,” said Kaynat Chainwala, AVP Commodity Research, Kotak Effects, said. “Globally, further downward pressure could emerge early in the week as higher CME margins take effect on Monday, February 2,” he added.

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