Gold Rate Today: Gold and silver prices witnessed a sharp correction on February 2, 2026, coinciding with the Union Budget presentation, as heavy profit booking, weak global cues, and regulatory developments triggered intense selling across markets. Gold prices slipped sharply on MCX futures, while silver recorded a massive decline, extending losses for a third straight session.
Despite no change in customs duty on gold and silver imports in the Budget, heightened margin requirements by global exchanges, a stronger US dollar, and concerns over future US monetary policy weighed heavily on investor sentiment. The correction follows record highs touched by precious metals in recent weeks.
Key Highlights on Gold and Silver Price Movement on Budget Day (February 2, 2026)
- MCX gold futures declined by over 4% during intraday trade on Budget day.
- MCX silver futures crashed by up to 12%, extending recent losses.
- Heavy profit booking followed record highs in gold and silver prices.
- Customs duty on gold and silver imports remained unchanged in the Union Budget.
- CME margin hikes, weak global cues, and a strong US dollar pressured prices.
- Retail gold and silver prices varied widely across Indian cities.
MCX Gold and Silver Futures Extend Sharp Losses
Gold prices declined sharply on the Multi Commodity Exchange (MCX) on February 2 as traders continued aggressive profit booking after the recent rally. MCX gold February futures fell by more than ₹5,700, or over 4%, slipping to around ₹1,36,498 per 10 grams during morning trade. At one point, prices dipped even further, reflecting sharp volatility during the Budget session.
Silver witnessed a steeper correction. MCX silver March futures plunged nearly ₹32,000, or about 12%, falling to ₹2,33,774 per kilogram. The sell-off followed a strong rally that had taken silver prices to record highs in recent sessions.
In the previous session, MCX silver futures had already dropped by ₹26,273, or 9%, settling at ₹2,65,652 per kilogram, while gold futures declined by around 3%, or ₹4,592, to close near ₹1,47,753 per 10 grams, highlighting sustained selling pressure.
City-Wise Gold and Silver Prices in India on February 2, 2026
Despite sharp declines in futures markets, retail gold prices across major Indian cities remained elevated, reflecting local taxes, demand patterns, and logistics costs.
24 Carat Gold Prices (Per 10 Grams)
| City | Price (₹) |
| Mumbai | 1,69,300 |
| Delhi | 1,69,470 |
| Kolkata | 1,69,310 |
| Bengaluru | 1,69,300 |
| Chennai | 1,73,010 |
| Pune | 1,69,350 |
| Surat | 1,69,300 |
| Jaipur | 1,69,380 |
Chennai continued to report the highest 24-carat gold price among major Indian cities.
Silver Prices (Per Kilogram)
| City | Price (₹) |
| Mumbai | 4,10,900 |
| Delhi | 4,11,900 |
| Kolkata | 4,06,900 |
| Bengaluru | 4,05,900 |
| Chennai | 4,18,900 |
| Pune | 4,12,900 |
Silver prices remained largely flat in some cities compared to Saturday, though the broader trend stayed weak.
Budget Impact: Customs Duty on Gold and Silver Remains Unchanged
The Union Budget presented on Sunday did not announce any change in customs duty on gold and silver imports. Importers will continue to pay a total duty of 6%, which includes 5% basic customs duty and 1% agriculture infrastructure and development cess.
Despite this policy continuity, gold prices fell by nearly 3% in parts of the physical market, while silver prices declined between 9% and 18%, indicating that global developments, rather than domestic tax changes, drove the sharp correction.
Heavy Profit Booking After Record Highs Triggers Correction
Gold and silver prices witnessed a significant correction after touching record highs last week. Gold with 99.9% purity reportedly plunged by nearly ₹14,000 per 10 grams on Friday, while silver prices tumbled by around ₹20,000 per kilogram.
According to the All India Sarafa Association, silver prices fell by ₹72,500, or 18.85%, to ₹3,12,000 per kilogram after touching a record high of ₹4,04,500 per kilogram. This marked the second consecutive session of steep losses.
Despite the sharp fall, silver still closed January with strong gains, rising ₹73,000, or 30.5%, from ₹2,39,000 per kilogram at the end of December 2025.
Global Pressure Builds as CME Raises Margin Requirements
A key trigger behind the sell-off was the increase in margin requirements for precious metals futures by CME Group. For gold futures, margins for non-heightened risk positions were raised from 6% to 8%, while margins for heightened risk positions increased from 6.6% to 8.8%.
For silver futures, margins were raised from 11% to 15% for non-heightened risk positions and from 12.1% to 16.5% for heightened risk positions. Higher margin requirements increase trading costs, often forcing traders to reduce positions and dampening speculative activity.
Internationally, US gold futures declined to around $4,605 per troy ounce, reflecting similar pressure in global markets.
US Dollar Strength and Fed Policy Outlook Weigh on Sentiment
Gold and silver prices were further pressured by a stronger US dollar and rising US Treasury yields. Markets also reacted to reports that US President Donald Trump plans to nominate Kevin Warsh as the next chair of the Federal Reserve.
Warsh is perceived as having a more hawkish stance on interest rates, which weighed on investor sentiment. A stronger dollar and higher interest rates typically reduce the appeal of non-yielding assets such as gold. Analysts also cited upbeat US inflation data, including producer price indices, as an additional factor impacting prices.
Gold Prices in India vs Dubai: Why Indian Rates Remain Higher
Gold prices in India continued to trade significantly higher than in Dubai, a major global bullion hub. On February 2, 2026, the price of 24-carat gold in India stood at ₹1,44,130 per 10 grams, while the same purity gold in Dubai was priced at ₹1,31,897 per 10 grams.
This reflects a price difference of ₹12,233, or approximately 9.27%. Similar gaps were observed for 22-carat and 18-carat gold. The difference is largely attributed to import duties, GST, and other local levies in India, which are comparatively lower in Dubai.
How Gold Prices Are Determined in India: Role of IBJA Explained
Gold prices in India are not fixed by any single authority. The Indian Bullion Jewellers Association (IBJA) plays a central role in determining daily benchmark gold prices across the country.
IBJA represents the organised bullion market and sets daily gold rates by consulting the ten largest bullion dealers in India. These dealers provide buy and sell quotes based on international gold prices, the rupee-dollar exchange rate, import duties, and prevailing market conditions. IBJA averages these quotes and adjusts them for applicable local taxes to determine the day’s benchmark price.
Banks import gold and supply it to bullion dealers, who add their margins before selling it further in the supply chain. This mechanism ensures domestic prices broadly track global trends while reflecting local market realities.
What This Market Correction Means for Gold and Silver Investors
The sharp fall in gold and silver prices on Budget day highlights the sensitivity of precious metals to global financial conditions, regulatory changes, and investor positioning. While domestic policy remained stable, international cues played a decisive role in driving prices lower.
For investors, the current correction underlines the importance of tracking global markets, currency movements, and regulatory developments alongside domestic prices. As volatility persists, informed and cautious decision-making remains essential when navigating the precious metals market.
FAQs on Gold Rate Today: MCX Gold Drops Over 4% on Budget Day, Silver Prices See Massive Decline
Q1. Why did gold prices fall sharply on Budget Day?
Gold prices fell due to heavy profit booking, weak global cues, a stronger US dollar, CME margin hikes, and concerns over future US Federal Reserve policy.
Q2. How much did MCX gold and silver prices decline on February 2, 2026?
MCX gold futures dropped over 4%, while MCX silver futures crashed by up to 12%, extending losses after recent record highs.
Q3. Did the Union Budget change customs duty on gold and silver imports?
No, the Union Budget kept customs duty unchanged, with total import duty on gold and silver remaining at 6%.
Q4. Why are gold prices in India higher than Dubai rates?
Gold is costlier in India due to import duties, GST, and local taxes, leading to a price difference of about 9.27% compared to Dubai.
Q5. What role does IBJA play in determining gold prices in India?
IBJA sets daily benchmark gold prices by averaging buy and sell quotes from major bullion dealers, factoring in global prices, exchange rates, and taxes.
