Budget 2026: Gold and Silver Prices Under Watch in Special MCX Session Following Historical Crash

The Multi Commodity Exchange (MCX) is conducting a special trading session on Sunday, February 1, 2026, to coincide with the presentation of the Union Budget 2026. This session follows a period of unprecedented volatility in the precious metals market, characterized by a significant sell-off in both gold and silver. Market participants are closely monitoring the impact of fiscal policy announcements on commodity prices after recent record highs were followed by a sharp correction.

Historical Price Correction and Current Levels

In the final week of January 2026, gold and silver reached their respective all-time highs before witnessing a dramatic reversal. 91 lakh per kilogram. 49 lakh per 10 grams mark. According to market analysts, this correction was triggered by a combination of technical factors and a shift in global sentiment.

Key Drivers Behind the Recent Sell-off

Several factors contributed to the sharp decline in precious metal prices leading up to the budget. A primary driver has been the strengthening of the US Dollar Index, which typically exerts downward pressure on dollar-denominated commodities. On top of that, international exchanges implemented higher trading margins, forcing traders to liquidate positions, while domestically, large-scale profit booking by institutional players and uncertainty surrounding potential changes in import duties in the upcoming budget further accelerated the downward trend.

Significance of the Special MCX Session on Budget Day

The decision to hold a special trading session on a Sunday underscores the importance of the Union Budget for the commodity markets. Historically, any revision in the basic customs duty (BCD) or Agriculture Infrastructure and Development Cess (AIDC) on gold and silver has led to immediate price adjustments in the domestic market. Analysts suggest that the special session will provide a platform for price discovery as the market reacts in real-time to the Finance Minister's proposals regarding the gems and jewelry sector.

Market Analysis and Global Cues

According to commodity experts, the market is currently in a phase of price consolidation, while 49 lakh for gold are being tested as key psychological benchmarks. The future trajectory will likely be influenced by global geopolitical developments and the monetary policy stance of the US Federal Reserve. Experts maintain that while the long-term fundamentals remain a subject of discussion, the immediate focus remains on liquidity and volatility management during the budget session.

Ultimately, the special MCX session on Budget 2026 serves as a critical juncture for precious metals. Following the historic crash, the market is poised to react to domestic policy shifts, which will determine whether the current price levels find stability or face further pressure.