Gold prices witnessed extreme volatility on Union Budget day, with MCX futures logging one of their sharpest intraday declines in recent months, even as retail prices in major cities stayed elevated due to taxes, duties, and local premiums.
On the Multi Commodity Exchange (MCX), 24-carat gold futures slipped to an intraday low of ₹1,36,185 per 10 grams, sharply lower than the opening price of ₹1,46,800, reflecting aggressive unwinding of speculative positions amid a broader risk-off mood across asset classes.
Silver futures also came under pressure, with contracts hitting lower circuit levels during the session as volatility spiked.
MCX Gold Price Movement (Budget Day)
| Contract | Opening Price (₹/10 gm) | Intraday Low (₹/10 gm) | Change (₹) |
|---|---|---|---|
| Gold (24K Futures) | 1,46,800 | 1,36,185 | ▼ 10,615 |
Source: MCX data, Budget Day session
City-wise Gold & Silver Prices (Retail Market)
| City | 24K Gold (₹/10 gm) | Silver (₹/kg) |
|---|---|---|
| Delhi | 1,69,470 | 4,11,900 |
| Mumbai | 1,69,300 | 4,10,900 |
| Kolkata | 1,69,310 | 4,06,900 |
| Bengaluru | 1,69,300 | 4,05,900 |
| Chennai | 1,73,010 | 4,18,900 |
| Pune | 1,69,350 | 4,12,900 |
| Surat | 1,69,300 | 4,13,900 |
| Jaipur | 1,69,380 | 4,12,900 |
Retail prices include import duty, GST, and local levies; hence they remain higher than MCX futures.
Why Gold and Silver Fell Sharply
Budget impact: Announcement of a hike in Securities Transaction Tax (STT) on Futures & Options increased trading costs, triggering panic selling.
Market crash: Sharp declines in Sensex and Nifty amplified risk aversion.
Profit booking: Gold had rallied strongly in prior sessions, leaving it vulnerable to a correction.
High leverage unwind: Commodity futures saw rapid position squaring amid extreme volatility.
Expert View
The steep fall in MCX gold reflects derivatives-driven selling rather than a collapse in physical demand. Retail gold prices remain resilient, supported by taxes, import duties, and wedding-season buying. However, near-term volatility is expected to persist as markets digest Budget cues and global macro signals.
