Gold and silver prices tumbled nearly 6% each on the Multi Commodity Exchange (MCX) on Sunday, extending a historic two-day global sell-off that has erased years of accumulated gains in precious metals.
The sharp correction has come at a sensitive time, colliding with Budget Day speculation over a possible reduction in bullion import duties, leaving traders and jewellers uncertain whether the fall presents a buying opportunity or signals further downside risk.
The global rout began late Friday, with silver plunging as much as 37% intraday, while gold slumped 12% in the spot market, marking its steepest single-day fall since the early 1980s. The collapse unfolded after Indian equity markets had closed, resulting in a sharp gap-down opening on MCX.
Following the sell-off, gold is now trading at around ₹1.4 lakh per 10 grams, while silver stands at ₹2.74 lakh per kilogram. Shares of MCX also opened nearly 9% lower, as heightened volatility rippled through the broader market.
Exchange-traded funds (ETFs) linked to precious metals are bracing for another round of sharp price adjustments this week, after declining between 15% and 20% on Friday.
Adding to market uncertainty is ongoing speculation that the government may announce a cut in bullion import duties in the Union Budget. Currently, gold and silver imports attract around 6% basic customs duty and 3% GST, translating to an effective tax burden of nearly 9%. This is significantly lower than earlier peak levels of 15%, which had previously fuelled smuggling and widened the price gap with global markets.
With global cues, budget expectations, and extreme volatility converging, precious metals remain firmly in focus, as traders await clarity on policy measures and price direction