As investors continued to process the implications of the Union Budget 2026 and international policy cues, gold prices in India stayed muted on Tuesday, continuing their calm period for a third consecutive session.
Gold is currently trading close to mid-January levels following the steep decline following the Budget, with minimal participation being maintained by a lack of new local catalysts and weak foreign cues. Silver, on the other hand, continued to be under tremendous pressure and was near recent crash lows following one of the sharpest falls in Indian market history.
Gold Prices Consolidate After Post-Budget Volatility
On February 3, gold prices decreased by ₹1 per gram for all purities. As the immediate concern around the budget has subsided, the precious metal has entered a consolidation period, but there isn’t a compelling positive catalyst to propel a recovery.
- 24K gold: ₹15,316 per gram
- 22K gold: ₹14,039 per gram
- 18K gold: ₹11,487 per gram
The price of MCX gold futures for February 2026 was close to ₹1,53,160 per 10 grams, indicating a lack of activity and a wait-and-watch attitude among dealers. Although a significant overhang was eliminated, market players observed that the Budget’s decision to not significantly increase import levies on gold did little to improve mood. The limited trading range has also been influenced by the Indian rupee’s relative steadiness in relation to the US dollar.
City-Wise Gold Rates Show Limited Movement
Gold prices across major Indian cities broadly tracked the national trend, with only minor regional variations driven by local demand.
Mumbai, Kolkata, Bengaluru, Hyderabad, Kochi, Pune:
24K at ₹15,316 per gram, 22K at ₹14,039 per gram
Delhi:
24K at ₹15,331 per gram, 22K at ₹14,054 per gram, trading at a slight premium
Chennai:
24K at ₹15,217 per gram and 22K at ₹13,949 per gram, while 18K gold continued to trade at a premium compared to other metros Over the past 10 days, gold has seen a sharp pullback from late-January highs, underlining the scale of the recent correction following January’s strong rally.
Global Cues and Outlook for Gold
After a sharp decline brought on by the Indian Budget and a hawkish candidate for Federal Reserve chair, international gold markets remained tranquil, with prices stabilizing. Following its sharp increase in January, analysts think the metal is going through a healthy correction.
In search of more precise indications regarding interest rates, focus has now switched to forthcoming US economic statistics. Citing geopolitical dangers and persistent central bank purchases, many experts maintain a positive long-term outlook despite cautious near-term sentiment. In the upcoming weeks, some degree of price stability is anticipated on the domestic front due to wedding season demand.
Silver Stuck Near Crash Lows After Historic Sell-Off
After an incredible decline during the previous week, silver prices in India stayed close to multi-month lows on Tuesday. Silver reached a record high of around ₹4.10 lakh per kilogram just five days ago. Since then, sentiment has been crushed by a “triple threat” of negative forces, causing prices to drastically reverse and drop by over ₹1.25 lakh per kg.
- Silver price today: ₹2,99,900 per kg
- 10 grams: ₹2,999
After days of intense selling, the retail prices dropped by a slight ₹100 per kg on the day, indicating market fatigue. MCX silver futures for February 2026 were trading close to ₹2,45,000 per kilogram, trapped at a 5% lower circuit.
What Triggered the Silver Market Crisis?
Silver has had one of the fastest and steepest corrections in the history of the Indian market, falling over 36% from its peak on January 29. Global exchange margin increases, aggressive post-Budget profit-booking in India, and hawkish US Federal Reserve signals all contributed to the drop.
The CME Group’s planned margin hike from 11 percent to 15 percent, which went into effect on February 2, accelerated the sell-off. As a result, buyers stood back, forcing a quick unwinding of leveraged holdings and creating a liquidity bottleneck. Silver’s extreme underperformance in comparison to gold was highlighted by the rapid widening of the silver-to-gold ratio.
Is the Silver Bull Run Over?
Questions about whether the silver bull market has ended or if this is a harsh but brief correction have been raised by the steep decline. The violation of the ₹3.00 lakh per kilogram level, according to technical analysts, is a major negative signal that indicates additional short-term downside risk.
However, other fundamental analysts contend that the long-term factors such as China’s export restrictions and a tight physical supply situation connected to the demand for green energy and artificial intelligence remain the same.
Also Read: Nipah Virus and Bird Flu in India Assessing Human Fatality Risks
Some are interpreting the latest drop as a shakeout of speculative “weak hands.” The next stage will be determined by whether long-term investors and physical buyers intervene at the current levels or if trading is still dominated by fear.
