New Delhi: Union Finance Minister Nirmala Sitharaman’s ninth consecutive Union Budget presentation on Sunday coincided with a dramatic bullion rout.
The gold and silver prices hit lower circuit levels on MCX, signalling extreme market volatility just hours before the key policy announcements, as reported the NDTV.
Gold futures for April delivery plunged 6% to Rs 1,43,205 per 10 grams, while silver for March fell similarly to Rs 2,74,410 per kg, both triggering lower circuit breakers on MCX. This caps a brutal weekly correction: gold shed nearly 26% from its record Rs 1,93,096 peak, and silver dropped over 30% from Rs 4.04 lakh/kg highs hit last week, the New Indian Express reported.
Traders attribute the crash to profit-booking after a geopolitical-fueled rally, a strengthening US dollar, and pre-Budget jitters over potential duty hikes or reforms. Retail gold eased to Rs 16,900-17,000 per gram in major cities, down Rs 965 in a day, while silver’s industrial demand from solar and EVs offers some long-term cushion, according to Business Today.
Market sentiment has flipped from euphoria to caution, with MCX shares tumbling 10% and gold ETFs down 16%. Analysts eye Budget cues on customs duties—unchanged in recent years but cut in 2024, which could trigger fresh swings. As Sitharaman steps to the podium, investors brace for policy signals amid this “worst-ever rout,” hoping for stability in a fragile global outlook, as reported by Upstox.
