Gold and silver plunge 9 percent ahead of Union Budget 2026 after global sell-off

What happened: Gold and silver prices crashed nearly 9 percent in overnight global trade, dragging domestic rates sharply lower this morning.

Why it matters now: The fall comes hours before Union Budget 2026, fuelling speculation of a possible cut in bullion import duty.

What changes for people: Jewellery buyers may see short-term price relief, while traders face heightened volatility.

Who is affected: Bullion investors, jewellers, importers, and households planning gold purchases.

Gold and silver markets were hit by a major global sell-off late Thursday, triggering a sharp 9 percent decline in both metals as trading opened in India. The timing has drawn attention, coming just ahead of Finance Minister Nirmala Sitharaman’s Budget speech, where bullion import duties are often closely watched.

Analysts say the sudden drop aligns with growing market chatter that the government may reduce import duty on gold and silver, a move that could make bullion cheaper and curb smuggling. While there is no official confirmation, expectations alone were enough to intensify selling pressure worldwide.

Global slide triggers domestic shock

International markets saw heavy liquidation in metals overnight amid broader risk-off sentiment. This weakness spilled directly into Indian spot and futures markets, sending prices downward within minutes of opening.

Bullion dealers said the correction was sharper than usual because traders were trying to pre-position ahead of potential Budget announcements.

Why the Budget matters for bullion

India is one of the world’s largest consumers of gold, and even a small change in import duty impacts:

retail jewellery prices

investment demand

imports and trade flows

currency requirements for the bullion sector

A duty cut would make gold cheaper for buyers but could compress margins for importers and trigger a short-term reset in pricing.

Volatile day expected for traders

Market experts warn that metals may remain jittery until the Union Budget details are fully announced. Immediate direction will depend on:

whether duty cuts are confirmed

global recovery after the sell-off

domestic demand sentiment

What to watch next

All eyes are now on the 11 am Budget speech, where any reference to customs duties on precious metals could trigger another sharp swing in prices.