Gold and silver prices witnessed a sharp sell-off on Sunday, ahead of the Union Budget 2026 presentation by Finance Minister Nirmala Sitharaman, as both precious metals hit lower circuit levels in futures trade.
Traditionally considered safe-haven assets, gold and silver saw heavy volatility amid heightened market uncertainty surrounding budget expectations and global cues.
Gold Prices See Steep Volatility
Gold prices experienced significant fluctuations in the domestic commodity market on Saturday. 24-carat gold declined by nearly 5.4 per cent, settling at ₹1,69,470 per 10 grams.
In the international market, gold prices fell by over 9 per cent, slipping to USD 4,887 per ounce, reflecting a broad-based global correction.
According to market data, gold prices later slid further by ₹3,500, or 2.07 per cent, to ₹1,65,500 per 10 grams (inclusive of all taxes).
Silver Prices Tumble Nearly 19%
Silver prices recorded an even steeper decline. In the national capital, silver fell around 19 per cent, dropping to ₹3.12 lakh per kilogram.
As per the All India Sarafa Association, silver prices plunged by ₹72,500, or 18.85 per cent, to ₹3,12,000 per kg (inclusive of all taxes). This marked the second consecutive session of heavy losses, erasing a large portion of the week’s earlier record gains, according to PTI.
Recent Record Highs Before the Fall
The sharp correction comes after both metals touched record highs earlier this week:
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Silver surged to an all-time high of ₹4,04,500 per kg on Thursday before retreating sharply.
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Gold climbed to a record ₹1,83,000 per 10 grams, before dropping 7.6 per cent in the previous trading session.
At the end of last year, gold was priced at ₹1,37,700 per 10 grams, indicating an annual rise of 20.2 per cent, or ₹27,800, before the recent decline.
Global Markets Also Under Pressure
The downturn was mirrored in global markets:
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Spot silver plunged 27.07 per cent to USD 84.70 per ounce, after falling as much as 36 per cent intraday
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Gold prices declined by USD 530.53, or 9.83 per cent, to settle at USD 4,865.35 per ounce
Market participants are closely monitoring global economic signals and policy announcements for further direction.
Market Outlook
Analysts suggest that precious metals may continue to remain volatile in the near term, with investors awaiting clarity from the Union Budget 2026 and cues from global financial markets.
