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Precious metals witnessed a dramatic sell-off over the weekend, sending shockwaves through India’s bullion markets. Gold and silver prices plunged sharply as investors rushed to book profits and brace for policy signals ahead of the Union Budget 2026.

The sudden reversal comes after both metals touched historic highs earlier in the week, underscoring how fast sentiment can shift in volatile global and domestic conditions.

Steep Fall in Gold Prices Shakes Investors

Gold prices saw intense turbulence on Saturday, extending losses for a second straight session. In futures trading, gold contracts fell by as much as 9 percent as traders reacted nervously ahead of Finance Minister Nirmala Sitharaman’s Union Budget presentation on Sunday.

The April gold futures contract recorded one of its steepest single-week declines, sliding ₹13,711 to settle near ₹1,38,634 per 10 grams. In the physical market, 24-carat gold dropped around 5.4 percent to ₹1,69,470 per 10 grams.

According to market data, gold prices inclusive of all taxes slipped ₹3,500, or just over 2 percent, to ₹1,65,500 per 10 grams in the national capital.

Silver Suffers Even Deeper Losses

Silver prices bore the brunt of the sell-off, witnessing sharper declines than gold. In Delhi’s bullion market, silver crashed nearly 19 percent to ₹3.12 lakh per kilogram, erasing a significant portion of this week’s gains.

The All India Sarafa Association reported that silver tumbled ₹72,500 per kg—an 18.85 percent drop—marking the second consecutive day of heavy losses. The fall wiped out much of the record rally silver had staged earlier in the week, according to inputs from PTI.

Market participants noted that silver’s steep correction reflected aggressive profit-booking after prices surged to unprecedented levels.

Record Highs Earlier in the Week

The dramatic downturn follows a remarkable rally that pushed both metals to all-time highs just days earlier.

On Thursday, silver touched a record ₹4,04,500 per kilogram before retreating sharply in the following session. Gold, meanwhile, climbed to an all-time high of ₹1,83,000 per 10 grams before plunging more than 7 percent in the previous trade.

Despite the latest correction, gold remains significantly higher compared to last year. Prices have risen more than 20 percent, or about ₹27,800 per 10 grams, from the ₹1,37,700 level recorded at the end of last year.

Global Markets Mirror the Slump

The sharp sell-off was not limited to Indian markets. Precious metals tumbled across global exchanges as well, amplifying losses at home.

Spot silver plunged by over 27 percent to close at USD 84.70 per ounce. During intraday trade, prices had fallen as much as 36 percent to USD 73.30 per ounce, reflecting intense volatility.

Gold prices in international markets also saw heavy pressure, dropping nearly 10 percent. Spot gold slid USD 530.53 to settle around USD 4,865.35 per ounce, while some benchmarks briefly dipped even lower during the session.

Market analysts attributed the global decline to a mix of profit-taking, shifting interest rate expectations, and a stronger dollar weighing on non-yielding assets like gold and silver.

Budget Expectations Fuel Market Nervousness

The timing of the sell-off has drawn attention, coming just ahead of the Union Budget 2026. Traders and investors often reduce exposure to commodities before major policy announcements, particularly when prices are at record levels.

Bullion dealers said uncertainty over potential changes in import duties, taxation, or fiscal priorities added to the cautious mood. Even small policy tweaks can have outsized effects on gold and silver demand in India, one of the world’s largest consumers of precious metals.

According to bullion market participants cited by PTI, the speed and scale of the correction suggest that speculative positions were unwound rapidly as risk appetite weakened.

What This Means for Investors and Consumers

For investors, the sharp correction serves as a reminder of how volatile precious metals can be, especially after rapid price run-ups. Analysts caution that while gold’s long-term fundamentals remain supported by geopolitical risks and central bank demand, short-term swings can be severe.

For consumers, particularly ahead of the wedding season, the decline could offer some relief if prices stabilize at lower levels. However, dealers warn that continued volatility is likely until clearer signals emerge from budget announcements and global monetary policy trends.

Jewellers also expect near-term demand to remain cautious, as buyers wait for prices to find a stable range before making large purchases.

Outlook: Volatility Likely to Persist

Market experts believe gold and silver prices could remain choppy in the near term, driven by global cues, currency movements, and policy clarity from New Delhi.

While long-term investors may view corrections as opportunities, short-term traders are expected to stay cautious amid uncertain macroeconomic signals. Any guidance on inflation control, fiscal discipline, or import duties in the Union Budget could influence bullion prices in the days ahead.

Conclusion

The sharp fall in gold and silver prices marks a dramatic reversal from this week’s record highs, highlighting the fragile balance between optimism and caution in commodity markets. As global volatility and domestic policy expectations collide, investors and consumers alike are bracing for continued price swings in the days to come.

(With inputs from PTI.)