Gold and Silver Prices: Gold and silver saw their sharpest fall in 30 years, shocking markets. Though the crash coincided with Budget 2026, global factors, not budget expectations, appear to be the main cause.
Gold and Silver Prices Crash During Special Budget Session
On Sunday, during a special trading session on the Multi-Commodity Exchange (MCX) held in anticipation of Budget 2026, both gold and silver extended their losses sharply.
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- MCX Gold opened at ₹1,51,610 per 10 grams and soon slipped nearly 9%, falling well below previous levels amid aggressive selling.
- MCX Silver opened lower at ₹2,84,826 per kg and also plunged over 9%, with prices even hitting lower circuit limits during the session.
Biggest Crash in Years: What Happened on Friday?
The selloff actually began before Budget day, when gold and silver recorded their worst single-day fall in decades.
- MCX gold crashed by ₹33,113 (around 18%) to close near ₹1,50,849.
- MCX silver plunged by ₹1,07,971 (nearly 27%) to ₹2,91,922.
Global Meltdown: US Dollar Emerges as Key Trigger
The crash wasn’t limited to Indian markets. Global gold and silver prices collapsed simultaneously, indicating a broader macroeconomic trigger.
- Gold prices fell by more than 12%, dropping below $5,000 per ounce, marking the largest daily decline since the early 1980s.
- Silver prices recorded a shocking 36% intraday crash.
Margin Hikes Add Fuel to the Sell-Off
Adding further pressure, CME Group raised margin requirements on gold and silver futures following extreme volatility.
- Gold margins increased to 8%
- Silver margins were hiked to 15%
Is Budget 2026 Really to Blame?
The gold and silver crash coincided with Budget 2026, but no direct policy targeted the metals. The fall was driven by a stronger US dollar, shifting US policy expectations, margin hikes, leverage unwinding, and heavy profit booking.
