Budget 2026, Nirmala Sitharaman: Gold, silver futures plummet 9% to hit lower circuit levels

Gold and silver prices plunged up to 9% in futures trade on Sunday (February 1, 2026), hitting their lower circuit levels ahead of the Union Budget for 2026-27, as investors extended profit booking after the recent record-breaking rally.

Finance Minister Nirmala Sitharaman will present the FY27 budget in Parliament later in the day.

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The rout extended for the second straight day, with the April contract for gold futures declining ₹13,711, or 9%, to ₹1,38,634 per 10 grams, touching its lower circuit level in the futures trade on the MCX.

In the previous session, the yellow metal plunged ₹31,617, or 17.2%, to close at ₹1,52,345 per 10 grams, after hitting a record high of ₹1,93,096 per 10 grams on Thursday (January 29, 2026).

On the Multi Commodity Exchange (MCX), silver futures also suffered a heavy setback as traders continued to book profits at elevated levels, with the March contract nosediving ₹26,273, or 9%, to ₹2,65,652 per kilogram — its lower circuit level.

On Friday (January 30, 2026), the white metal slumped ₹1,07,968, or 27%, to close at ₹2,91,925 per kg, also touching its lower circuit level. The sharp sell-off followed Thursday’s (January 29, 2026) record peak of ₹4,20,048 per kg.

Traders said the steep correction in bullion prices was driven by aggressive unwinding of long positions amid volatility in global markets and cautious investor sentiment ahead of the presentation of the Union Budget.

Global futures markets are closed on Sunday (February 1, 2026) due to a holiday.