Gold and Silver Prices fell Sharply: After the presentation of Union Budget 2026-27, along with the stock market, the commodity market also came under pressure. A huge fall was seen in the market the very next day of the budget.
Gold and silver, which had reached record highs till a few days ago, suddenly fell. This fall for the second consecutive day has left both investors and common buyers confused.
Effect of selling in futures market
The selling in the futures market was so intense that within a few hours the prices fell far below their all-time high. This sharp fall changed the trend of the entire market and also affected the strategies of investors.
The whole equation changed in two days
According to Multi Commodity Exchange (MCX) data, on January 29, silver had reached a record level of around Rs 4.01 lakh per kg.
But on February 1, it fell to around Rs 2.66 lakh per kg. That means, in just two days, silver became cheaper by about Rs 1.36 lakh per kg.
Heavy fall in gold prices also
The condition of sleeping was also similar. On January 29, gold had reached around Rs 1.69 lakh in the futures market. Now it has fallen and is trading around Rs 1.38 lakh.
At the same time, the price of 10 grams of gold has come down to around Rs 1.46 lakh. Overall, the price of gold fell by more than Rs 30 thousand in two days.
Two big reasons for the decline
According to market experts, there are two main reasons behind this decline.
First reason – Profit booking: When gold and silver reached record levels, investors started booking profits. Heavy selling brought down the prices.
Second reason – Slowdown of physical demand: Due to high prices, purchases by common customers and the jewelery industry weakened, due to which demand decreased and there was pressure on prices.
from a student’s perspective
If you look at it as a student, it is clear that the prices in the market do not always remain the same. It is common to see a decline after a big rise, hence investment and purchase should be done thoughtfully.