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

Domestic gold recovered losses of about Rs 9,500 per 10 gram, or nearly 7%, after hitting the day’s low of Rs 1,38,634 per 10 grams, to settle at Rs 1,48,104. While gold futures opened with a gap-up, prices came under sharp pressure amid profit booking in the run-up to the Budget 2026 announcements.The correction intensified on the MCX as the trading progressed, continuing Friday’s sharp correction.

March silver futures ended flat at Rs 2,65,652 per kg on the MCX.

The sentiments were further dented with no major announcement coming for the domestic jewellery sector.
Amid a spurt in the prices of gold and silver over the past one year, the bullion industry was expecting certain budget sops to give relief to the industry. Gold’s relentless price rally has given a dent to India’s traditional appetite for jewellery. A World Gold Council (WGC) report said that India’s jewellery consumption fell 24% year‑on‑year (YoY) to 430.5 tonnes in 2025, even as the value of that demand surged to an unprecedented $49 billion.
Dr. Renisha Chainani, Head of Research, Augmont said that the Bullion industry expected support to ease cost pressures from high gold and silver prices, including import duty reductions on gold, cut & polished diamonds, coloured gemstones, and GST rationalization.

It also sought simplified customs procedures, duty-drawback reform, and policy steps to help position India as a global diamond trading hub and boost exports and competitiveness, Chainani said.

In the actual budget announced, there were no major sector-specific tax cuts or import duty reductions announced specifically for the gems & jewellery sector, she said.

Gold, silver price action

On Friday, silver delivered a stunning reversal on MCX, plunging up to 27% — or Rs 1,07,968 — in a single day, marking its worst ever crash and dragging prices back below the Rs 3 lakh mark, just a day after the metal had soared to a record high of Rs 4 lakh.

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

“Selling pressure intensified on the MCX today, with both metals hitting lower circuits, sliding 9% earlier amid a brutal session, compounding Friday’s steep losses of 17% in gold and 27% in silver. Currently, gold trades 5% lower after a modest intraday recovery, while silver holds declines as traders now approach the Union Budget cautiously, wary of potential changes to import duties on precious metals,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said. “Globally, further downside pressure may emerge at the start of the week as higher CME margins take effect on Monday, February 2,” he added.

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