Gold and Silver prices hit lower circuit on MCX; Prices slide up to 9% in special budget session

Gold and silver prices fell sharply in futures trade during the special live trading session on Sunday, with both metals hitting the lower circuit of 9 per cent on the Multi Commodity Exchange (MCX), following one of their steepest single-day falls in recent months.

Silver futures for March delivery were trading at Rs 2,65,652 per kilogram, down Rs 26,273 or 9 per cent. Gold futures for February delivery declined Rs 13,468, or 9 per cent, to Rs 1,36,185 per 10 grams.

The sharp fall followed heavy selling seen on Friday, January 30, when investors rushed to monetise profits after a strong rally in precious metals.

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Gold and Silver Price Historic Fall

Gold and silver prices recorded a historic fall on Friday. Gold saw its biggest intraday percentage decline since 1983, while silver witnessed its sharpest intraday fall since 1980. Gold prices dropped nearly 11 per cent, and silver plunged around 31 per cent.

On the Comex, gold fell by $591 to close at $4,763 per ounce, while silver slipped by about $36 to below $79 per ounce. In the domestic market, MCX gold declined by around Rs 20,300 to trade near Rs 1.49 lakh per 10 grams, while MCX silver fell by nearly Rs 1.08 lakh to around Rs 2.91 lakh per kilogram.

Among other precious metals, spot silver fell 27.7 per cent to $83.99 an ounce, while platinum dropped 19.18 per cent to $2,125 an ounce and palladium plunged 15.7 per cent to $1,682.

Why Are Gold and Silver Prices Falling?

Gold and silver prices fell sharply after US President Donald Trump nominated Kevin Warsh as the next Chair of the Federal Reserve, a move that boosted the US dollar and pressured precious metals.

Markets viewed Warsh’s nomination as reducing uncertainty around the Federal Reserve’s leadership and easing concerns about the central bank’s independence. This led to a strong rally in the dollar, making gold and silver more expensive for holders of other currencies and triggering selling.

Warsh is known as a former Federal Reserve Governor and has earlier been seen as an inflation hawk. However, he has recently supported lower interest rates. His nomination raised expectations of a shift in US monetary policy, prompting investors to reassess their positions after a sharp rally in gold and silver.

What Anil Singhvi Said?

Zee Business Managing Editor and market expert Anil Singhvi said the correction in gold and silver prices was expected after a prolonged rally. “After such a strong rise, a correction is natural. Investors should look for buying opportunities when prices come down further,” he said.

Singhvi said domestic gold prices were currently trading around Rs 1.65 lakh per 10 grams. “A favourable buying level for gold would be closer to Rs 1.25 lakh per 10 grams,” he said. On silver, he added that a correction towards Rs 1.25–1.30 lakh per kilogram would offer better entry levels for investors.

MCX Open Today on Budget 2026

The sharp movement in prices came during a special live trading session held on Sunday due to the presentation of the Union Budget 2026-27. MCX allowed trading from 9 a.m. to 5 p.m., while the National Commodity and Derivatives Exchange (NCDEX) permitted trading from 10 a.m. to 5 p.m.

Commodity exchanges in India are usually closed on weekends, but special sessions were held on Sunday in view of the Union Budget.