Prices of Gold and silver tank 9% ahead of budget | See Rates

The Indian commodity markets witnessed a historic "black Sunday" as gold and silver prices crashed by an unprecedented 9% each on the Multi Commodity Exchange (MCX). This massive downturn extends one of the most brutal two-day sell-offs in the history of precious metals. The crash coincided with intense speculation surrounding the Union Budget 2026, with traders fearing significant changes to import duties. MCX gold plummeted by ₹13,711 to settle at ₹1,38,634 per ten grams, while silver saw a staggering drop of ₹26,273, bringing the price down to ₹2,65,652 per kilogram.

The domestic collapse was exacerbated by a violent "gap down" opening, as Indian markets reacted to the carnage that unfolded in global spot markets over the weekend. On Friday, international silver had plummeted by an astonishing 37% intraday, and global gold saw its biggest single-session drop since the early 1980s, falling 12%. Because these deeper overseas tumbles occurred after Indian equities had closed for the weekend, the resumption of trading on the MCX today triggered a wave of forced liquidations and panic selling across the board.

The ripple effects of this volatility have spread far beyond the trading pits. Exchange-traded funds (ETFs) are now bracing for a second round of massive price resets after already losing up to 20% on Friday. Even the exchange itself felt the heat, as MCX shares opened 9% lower today. For India’s vast jewellery trade, the crash has created an atmosphere of extreme uncertainty. While some see this as a rare "buying window" before the wedding season, others fear that a deeper blow to consumer sentiment and inventory valuation could lead to a prolonged slowdown in the sector.

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget later today, all eyes are on the potential rationalization of gold import duties. Any major announcement could either act as a floor for the current slide or trigger another wave of volatility. For now, the bullion market remains in a state of high alert, having recorded its steepest ever decline in silver and a once-in-a-generation collapse in gold prices within a mere 48-hour window.