The sell-off comes as investors continued profit booking following last week’s record-breaking rally, with sentiment turning cautious ahead of the Union Budget announcement.
Gold and silver futures witnessed a sharp decline on Sunday, plunging as much as 9 per cent and hitting their lower circuit levels on the Multi Commodity Exchange (MCX). The sell-off comes as investors continued profit booking following last week’s record-breaking rally, with sentiment turning cautious ahead of Finance Minister Nirmala Sitharaman’s presentation of the Union Budget for FY 2026-27.
The rout extended into a second consecutive session. Gold futures for April delivery fell ₹13,711, or 9 per cent, to ₹1,38,634 per 10 grams, reaching the lower circuit limit. This follows Friday’s steep fall of ₹31,617, or 17.2 per cent, which saw the yellow metal close at ₹1,52,345 per 10 grams after touching an all-time high of ₹1,93,096 on Thursday.
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Silver futures also suffered heavy losses. The March contract dropped ₹26,273, or 9 per cent, to ₹2,65,652 per kilogram, hitting its lower circuit level. On Friday, silver had already slumped ₹1,07,968, or 27 per cent, to ₹2,91,925 per kilogram, following Thursday’s record peak of ₹4,20,048.
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Market participants attributed the sharp correction in bullion prices to aggressive unwinding of long positions, heightened volatility in global markets, and investor caution ahead of the Budget. Global futures markets remain closed on Sunday due to a holiday.
Published: 01 Feb 2026, 11:20 am IST
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