Precious metals witnessed an unprecedented sell-off this week as gold and silver prices plunged sharply in global and domestic markets, wiping out significant value in one of the most dramatic corrections in years. The collapse coincided with heightened financial volatility and investor caution ahead of India’s Union Budget 2026–27 announcement.
Sharp Decline in Prices
On the Multi Commodity Exchange (MCX), gold futures for April delivery fell around ₹9,140 (about 6 percent) to trade near ₹1,43,205 per 10 grams, while silver futures for March delivery dropped ₹17,515 (about 6 percent) to about ₹2,74,410 per kilogram at the start of the Budget week session. These moves marked a continuation of the steep sell-off that started in the previous session.
Globally, bullion markets experienced similar pressure. Spot gold prices had plunged significantly in overseas trade, showing the largest single-session drop since the early 1980s, while silver’s decline was even more dramatic, with intraday falls approaching 30–37 percent in some contracts.
Drivers of the Sell-Off
Analysts point to a combination of factors driving the downturn. A key trigger was the strengthening of the US dollar and changes in expectations around the Federal Reserve’s monetary policy, after the announcement of a new Fed chair nominee. A stronger dollar typically weighs on dollar-denominated commodities like gold and silver, prompting liquidations.
Additionally, profit-booking by investors who had ridden the metals’ rally to record highs contributed to the sudden downward pressure. In some cases, this resulted in exchange-traded commodity products such as gold and silver ETFs falling by double-digit percentages.
Impact on Domestic Markets
The sharp correction has reverberated across India’s bullion and jewellery markets. Dealers reported increased selling activity as traders and investors looked to liquidate positions, while the domestic sacred metals segment saw heightened volatility despite the typically stable investment interest in gold and silver.
Consumers and jewellers alike are watching closely, especially on Budget Day, as any fiscal measures affecting import duties or taxes on precious metals could influence prices further.
Outlook and Investor Sentiment
While sharp sell-offs can unsettle markets in the short term, many analysts advise treating deeper price corrections as potential buying opportunities, particularly if macroeconomic fundamentals continue to support safe-haven demand over the medium-to-long term.
