Archive · 1 Feb 2026
Gold, Silver Prices Plunge on Budget Day
On February 1, 2026, which was Budget Day, the prices of gold and silver dropped a lot.
Gold prices fell by ₹13,468 per 10 grams, and silver prices hit their lowest point in a while.
This made the stock of the Multi Commodity Exchange (MCX) also drop by up to 15%.
The main reasons for this drop were the nomination of Kevin Warsh as the new US Federal Reserve Chair, which made the US dollar stronger, and the increase in the margins required for trading gold and silver.
These changes made investors worried and caused them to sell their gold and silver, leading to the big price drop.
Gold prices dropped ₹13,468 per 10 grams, hitting a low of ₹1,36,185 on February 1, 2026.
Silver prices fell 9% to the lower circuit at ₹2,65,652 per kg.
MCX stock declined up to 15% during the special Budget session.
The drop was triggered by the nomination of Kevin Warsh as US Federal Reserve Chair and a strengthening US dollar.
CME Group increased margin requirements for gold and silver futures, affecting investor sentiment.
- Who
- Investors, traders, and commodity markets
- What
- Sharp decline in gold and silver prices, MCX stock drop
- When
- February 1, 2026 (Budget Day)
- Where
- India, global commodity markets
- Why
- Nomination of Kevin Warsh as US Federal Reserve Chair, strengthening US dollar, increased margin requirements
- Date of Crash
- February 1, 2026
- Gold Price Drop
- ₹13,468 per 10 grams
- Gold Price Low
- ₹1,36,185 per 10 grams
- Silver Price Drop
- 9% to lower circuit
- Silver Price Low
- ₹2,65,652 per kg
- MCX Stock Drop
- Up to 15%
- MCX Stock Low
- ₹2,146.25
- Margin Increase for Gold
- 8% for non-heightened risk profiles
- Margin Increase for Silver
- 15% for non-heightened risk profiles
Sources
No Funds Settlement on Budget 2026 Day? MCXCCL's crucial pay-in, pay-out change you can't afford to miss out
Precious metal meltdown! MCX tanks 15% after historic silver, gold plunge on Budget Day
Gold, silver plunge: MCX, CME margins revised- What it means for investors
