The Union Budget 2026 created a strong impact on India’s domestic bullion market. Gold prices, which had been rising sharply for several days, suddenly slipped after key budget announcements. Policy decisions, especially on import duties, brought immediate relief to buyers and changed market sentiment.
Gold Prices Drop on Budget Impact
Gold prices recorded a sharp correction soon after trading began. On the Multi Commodity Exchange (MCX), the price of 10 grams of gold fell by nearly ₹2,000 to ₹3,500 in a single session. This drop surprised traders, as gold had recently moved close to the ₹80,000 mark. Despite uncertainty in global markets, the effect of domestic tax changes remained clearly visible.
Silver Rates See Heavy Decline
Silver prices followed the same downward trend. The price per kilogram slipped sharply from earlier levels of ₹90,000–₹95,000 to around ₹75,000–₹80,000. On MCX, silver prices dropped by nearly ₹15,000 to ₹26,000 per kilogram. This marked one of the steepest single-day falls in recent months.
Customs Duty Cut Brings Relief
The main reason behind the price fall was the government’s decision to reduce customs duty on gold and silver. Finance Minister Nirmala Sitharaman announced the move during the budget presentation. This step directly lowered the cost of precious metals for consumers and triggered quick price adjustments in the market.
Investor Strategy Shift Adds Pressure
Budget-led economic reforms also pushed investors to review their portfolios. Many traders shifted funds away from gold toward other investment options. This change reduced demand and added pressure on prices.
Buyers Welcome Price Correction
With the wedding season approaching, the fall in gold and silver prices has come as a relief for consumers. Jewellers expect improved buying interest if prices remain stable in the coming days.
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