Union Budget 2026: Gold, Silver Duty Cut On Feb 1?
- Union Budget 2026 keeps gold and silver prices in focus
- Union Budget 2026 hopes rise for customs duty relief
Hyderabad, Jan 31: Union Budget 2026 has placed gold and silver prices under sharp focus ahead of February 1, when Finance Minister Nirmala Sitharaman is set to present the budget. Market participants and industry leaders are closely watching for any move that could reduce customs duty and ease trade for the gems and jewellery sector. Therefore, expectations remain high as the bullion market prepares for budget driven cues.
Gold and silver prices have seen strong movement in recent weeks. After a strong rally through most of January, prices corrected sharply in the last few sessions. Meanwhile, traders expect fresh volatility once markets reopen on Monday, as reactions to Union Budget 2026 announcements begin to play out. The focus remains on policy signals that could influence near term price trends.
As of January 30, 2026, gold prices recorded a steep fall across categories. The price of 24 carat gold dropped by ₹9,650 to ₹1,69,200 per 10 grams, while 100 grams fell by ₹96,500 to ₹16,92,000. At the same time, 22 carat gold declined by ₹8,850 to ₹1,55,100 per 10 grams. Also, 18 carat gold slipped by ₹7,240 to ₹1,26,900 per 10 grams. However, despite this fall, gold remains on track to end January with gains of over 25 percent.
Silver prices also faced selling pressure during the correction. The price of one kilogram silver fell by as much as ₹50,000 at one stage. It is now down by ₹15,000 at ₹3,95,000 per kg. However, silver continues to trade above the ₹4 lakh level in key southern markets such as Chennai, Hyderabad, and Kerala. Even after the decline, silver has delivered nearly 66 percent returns so far.
Analysts link the correction to profit booking after prices entered overbought zones. A rebound in the US dollar also weighed on bullion. However, the broader outlook remains bullish due to geopolitical tensions, trade uncertainty, and worries over global growth in FY27. Commenting on the trend, Jateen Trivedi said margin hikes in global markets triggered aggressive selling and MCX gold may trade between ₹1,58,000 and ₹1,70,000.
Industry leaders are hopeful of relief in Union Budget 2026. Mangesh Chauhan said the sector seeks rationalisation of import duties, simpler customs rules, GST streamlining, and early rollout of the Tourist GST Refund scheme. All eyes are now on whether the budget delivers another customs duty cut on gold and silver.
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