Gold Market Recap: Budget Day Volatility Sees Gold Rebound, Silver Rout Deepens on 2 February 2026

The Indian gold market witnessed a dramatic and highly volatile trading session on 2 February 2026, primarily driven by the Union Budget presentation. After an initial sharp decline, gold prices staged a remarkable recovery from their day's lows, while silver continued its significant downtrend, experiencing a deeper rout despite some intraday bounce. This turbulent day left many investors and jewelry shoppers closely watching the screens for the latest movements in precious metals.

Early in the day, MCX gold futures saw a substantial fall, dropping as much as 3% and seeing a decrease of ₹47,000 from previous levels. Prices slipped towards ₹1.4 lakh per 10 grams, with some reports even noting a fall to ₹1.37 lakh in cities like Delhi, Mumbai, and Chennai. This initial slump pushed gold prices down by an estimated 25% from their record highs. However, as the day progressed, gold displayed strong resilience, rebounding significantly to trade around ₹1.48 lakh per 10 grams and even rising to nearly ₹1.5 lakh per 10 grams. Gold and Silver ETFs also recovered from their day's lows, reflecting the broader market's attempt to stabilize.

In stark contrast, silver faced a more severe downturn following the Budget announcement. Prices crashed by 6% and plunged by as much as ₹1.94 lakh on MCX, extending losses that saw it fall 40% from its record highs. The rout in silver deepened even as gold recovered, with reports indicating silver getting cheaper by ₹1.79 lakh. Despite a 5% rebound from its lower circuit, silver's overall performance remained bleak, highlighting a significant divergence between the two precious metals. Amidst this volatility, J.P. Morgan also released its expected gold price prediction for 2026, providing a longer-term perspective for investors.

For Indian investors and jewelry shoppers, the day's sharp correction and subsequent rebound in gold present a complex picture. Experts are urging long-term buying, suggesting that the current fall might offer a strategic entry point for those looking to accumulate gold. While the immediate outlook for silver appears more challenging given its extended losses, the recovery in gold indicates underlying demand. As the dust settles post-Budget, market participants will be closely monitoring global cues and domestic sentiment to gauge the next direction for precious metals, especially for those planning their next jewelry purchase or investment.