Gold and Silver Prices Crash Ahead of Budget: Silver Down ₹1.36 Lakh in Two Days, Gold Falls ₹31,000
New Delhi | February 1, 2026 | DeccanLive.com
Gold and silver prices have fallen sharply for the second day in a row. Ahead of the Union Budget on February 1, heavy selling was seen in the futures market.
In today’s trading, silver prices dropped by ₹26,000 (around 9%), bringing the price of 1 kg silver down to ₹2.65 lakh. Gold also saw a major fall. The price of 10 grams of gold dropped by ₹12,000 (around 8%) and is now trading at ₹1.38 lakh.
Jewellery Market Closed Today
The jewellery (bullion) market is closed today. Earlier, on January 30, silver prices had fallen by ₹40,638, while gold became cheaper by ₹9,545.
According to the India Bullion and Jewellers Association (IBJA):
- Silver price fell to ₹3,39,350 per kg
- 24-carat gold price dropped to ₹1,65,795 per 10 grams
Big Fall in Just Two Days
In the futures market (MCX), gold and silver have seen heavy losses in just two days:
Gold: Fell by ₹31,000
- On January 29, gold was at ₹1.69 lakh
- Today, it is trading near ₹1.38 lakh
Silver: Fell by ₹1.36 lakh
- On January 29, silver touched ₹4.01 lakh per kg
- Today, it dropped to ₹2.65 lakh per kg
Gold and Silver ETFs Also Hit
The sharp fall in MCX prices also affected Gold and Silver ETFs.
- Gold ETFs fell by up to 8% in early trading
- Silver ETFs dropped as much as 15%
Why Are Gold and Silver Prices Falling?
- Profit Booking:
Gold and silver prices recently touched record highs. Many investors booked profits, leading to heavy selling. - Weak Physical Demand:
After reaching all-time highs, physical demand for gold and silver weakened. There are also concerns about lower industrial demand.
Higher Margin Rules Added Pressure
SEBI-registered commodity expert Anuj Gupta said that after copper, the Chicago Mercantile Exchange (CME) has increased margin requirements for gold and silver.
- Gold margin increased from 6% to 8%
- Silver margin increased from 11% to 15%
When margins rise, traders need to deposit more money. Many traders sell their holdings to manage funds, which increases selling pressure and pushes prices down.
Tips for Buying Gold from Jewellers
- Buy Certified Gold Only:
Always buy gold with BIS hallmark certification. The hallmark has an alphanumeric code that confirms purity and carat value. - Cross-Check Prices:
Check gold prices from reliable sources like the IBJA website. Prices differ for 24-carat, 22-carat, and 18-carat gold.
How to Identify Real Silver: 4 Easy Tests
- Magnet Test: Real silver does not stick to a magnet
- Ice Test: Ice melts faster on real silver
- Smell Test: Real silver has no smell
- Cloth Test: Rubbing silver on white cloth leaves a black mark if it is real
