Gold and silver (Precious metals) investors in the international market suffered a big shock between January 30 and February 1. Similarly, after the Union Budget was presented by the Finance Minister of India, the share market witnessed the biggest fall in the last 6 years.
SNPNEWS.IN News (Gurmail Kamboj): Investors from all over the world who invested in gold and silver (Precious metals) got the opportunity to earn profits of up to 120% and 300% respectively during the last one year. During the first 29 days of January 2026, the prices of gold (24 carats) increased by about Rs 50,000 per 10 grams (24 carats) and silver by Rs 80,000 per kg.
Profit booking between January 30 and February 1, CME/COMEX raising margin requirements and US President Donald Trump nominating Kevin Warsh as the next Fed Chairman were seen as hawkish by the market, which strengthened the US dollar (DXY rose) leading to a large decline in precious metals (gold and silver) in the global market.
Read It: Investors Lose ₹9-10 Lakh Crore in Share Market, Gold and Silver Skyrocketing.
In the international market, gold is trading slightly stable at $4,879–$4,907 per ounce today after falling from $5600 to $4745 per ounce. Similarly, silver is trading at around $84 per ounce after falling from $121.75 to $78 per ounce.
In the Indian market, gold (24 carat) fell from 183000 per 10 grams to 160000 to 169000 per 10 grams. Similarly, silver is reported to have fallen from 425000 to 312000-384000 (up to ₹2.65 lakh on MCX according to some sources) per kg. Which is the biggest single-day/multi-day dip since the 1980s.
Read more: Russian Oil Companies Face Sanctions, India Threatened
This fall has dealt a big blow to investors (especially retail and ETF holders). In silver, the 33%+ dip in 2-3 days turned the profits of many investments into losses. Similarly, gold ETFs and silver ETFs have also fallen by 13-20%. In the international market too, it is being claimed that investors have lost $3 to $6 trillion due to heavy selling and profit booking.
The Indian retail market is still around ₹1,60,000+ per 10 grams (gold) and ₹3.5 lakh per kg (silver).
After a massive fall in precious metals, the Union Budget was presented in Parliament for the second time since 1999 by Finance Minister Nirmala Sitharaman ( her 9th budget) on 1 February 2026 (Sunday). After which the Indian stock market witnessed a major fall, as Finance Minister Nirmala Sitharaman has increased the Securities Transaction Tax (STT) in the budget, especially on Futures and Options (F&O) trading. This had a negative impact on the derivatives market (which is very large in India) and there was a heavy sell-off in the shares of companies involved in brokerage, trading. The market took this negatively and it was a knee-jerk reaction.
As a result, volatility in the market increased (India VIX rose 14%), but some sectors like IT remained slightly positive. After the budget, BSE Sensex: closed at 80,722.94, down 1,546.84 points (about 1.88%) from the previous day and NSE Nifty 50: closed at 24,825.45, down 495.20 points (about 1.96%). During this decline, Sensex fell by 2,300+ points intra-day and Nifty also touched close to 24,500. This wiped out about ₹10-11 lakh crore of market capitalization. Small and medium companies (midcaps and smallcaps) also fell by more than 2%.