Gold and silver prices in India are witnessing a historic downfall today,
February 1, 2026, with both metals hitting lower circuit limits on the Multi-Commodity Exchange (MCX) during a special Sunday trading session.
This follows a "bloodbath" at the end of January where silver plummeted by over ₹1.35 lakh and gold fell by more than ₹31,000 in just two days.
Current Market Rates (February 1, 2026)
The market is experiencing extreme volatility as the Union Budget 2026 is presented today.
MCX Gold (April futures): Trading at approximately ₹1,48,104 per 10 grams, down from a record peak of ₹1,93,096 last week.
MCX Silver (March futures): Locked at a 9% lower circuit at ₹2,65,652 per kg, a massive decline from recent highs above ₹4 lakh.
Retail/Spot Prices: In major cities, 24K gold is priced near ₹1,60,580 per 10 grams, while silver is trading around ₹3,50,000 per kg.
Key Reasons for the Downfall
Analysts attribute this sudden crash to a "perfect storm" of factors:
Massive Profit Booking: After months of relentless gains, investors are aggressively liquidating positions to book profits.
US Dollar Surge: A sharp rise in the US dollar index, fueled by the nomination of hawkish Kevin Warsh as the next US Federal Reserve Chair, has made dollar-denominated metals more expensive.
Margin Hikes: The CME Group and domestic exchanges raised margin requirements to curb volatility, forcing leveraged traders to exit their positions.
Budget Jitters: Anticipation regarding potential import duty changes in the Union Budget 2026 kept domestic buyers cautious, although the Budget ultimately kept duties unchanged.