365telugu.com online news,MUMBAI ,January 31st,2026: Precious metals witnessed a dramatic sell-off this week, with gold and silver prices crashing by up to 13% just days before the presentation of the Union Budget 2026. The sharp correction follows a period of record-high rallies, driven by a combination of global political shifts and domestic profit-booking.
The Friday Crash
After touching lifetime highs earlier in the week, bullion prices faced an aggressive downturn on Friday.
Silver Futures: On the Multi Commodity Exchange (MCX), silver for March delivery plunged 12.7% to end at ₹2,91,925 per kg, down from the previous week’s close of ₹3,34,699.
Gold Futures: April gold delivery dropped 8.2%, closing at ₹1,52,345 per 10 grams.
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In local Delhi markets, silver prices saw a single-day drop of ₹20,000 per kg, while gold prices fell by approximately ₹14,000 per 10 grams.
Global and Domestic Triggers
Market analysts attribute the sudden volatility to several key factors:
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US Political Shifts: The nomination of Kevin Warsh as the next US Federal Reserve Chair strengthened the US Dollar, creating immediate downward pressure on safe-haven assets like gold.
Profit Booking: Following record-breaking peaks—where silver hit over ₹4 lakh per kg and gold surpassed ₹1.8 lakh per 10 grams on Thursday—investors moved quickly to lock in gains.
US Fiscal Stability: Reports of a tentative deal between the US administration and Senate Democrats to avoid a government shutdown further reduced the immediate demand for “crisis-hedge” investments.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2026 on February 1.
The industry is closely monitoring potential announcements regarding:
Customs Duty: Any changes to the import duty on precious metals could significantly shift domestic price trends.
Sectoral Policies: New regulations or incentives for the bullion and jewelry trade.
While the current correction is steep, the long-term outlook remains complex. The Economic Survey 2025-26 suggests that demand for precious metals may stay elevated due to central bank buying and ongoing geopolitical uncertainties. However, experts warn that in the short term, bullion will remain under pressure as the market recalibrates following its recent “parabolic” rise.