After the Budget, Gold and Silver Prices are Volatile: Now is the Time to Buy?
The gold and silver markets experienced significant fluctuation recently. This prompted a flood of questions among investors and buyers throughout the country. Prices have calmed down after a spectacular rally, which pushed precious metals prices to new highs. Many are wondering if the dip is a good opportunity to buy or if there will be further drops.
Gold and silver prices have recently declined after a period of high volatility that occurred shortly after the Union Budget for 2026. Both metals have experienced their most significant single-day drop since 1980 in the last week. This marks a historical moment in the commodities markets. Gold prices on the domestic market have fallen from their record highs of Rs 1,80 lakh for 10 grams to Rs 1,49 lakh. Silver also fell from a high of Rs 4,20 lakh per kilogram to Rs 2,91 lakh.
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The global trend of falling gold and silver prices was mirrored by the same. Gold prices fell to around $4,864 an ounce globally, and silver to about $84.66. Gold prices dropped internationally from $5,600 to between $5160 and $5320 per ounce. The price of silver also dropped, from $121 per ounce to $108-$111.
Analysts say that profit-taking is a significant reason for the decline in gold and silver prices. Trading at lower prices was a quick reaction by traders after weeks of gains. The selling pressure has naturally pushed prices lower, but experts say it does not have a fundamental impact on the positive long-term outlook of these precious metals.
The market is still strong despite the steep fall. Gold is strong between Rs 1,575,000 and Rs 1,590,000. Silver is stable around Rs 3,555,000 to Rs 3,605,000 per kilogram.
The market has also been affected by policy changes. The Budget of last year reduced the import duty on gold and other metals from 15 to 6 percent to reduce smuggling and to align prices in Japan with those found globally. The speculation about further changes has contributed to this year’s volatility. However, no official announcements have been made, and the base customs duty is still around 6%.
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The market is keen to know if current prices are a good entry point. The recent drop in prices is a correction following a substantial increase, and not an indication that the market has collapsed.
Investors’ demand is still strong, according to the consensus. Gold and silver are held steady by buyers who step in when prices drop. Experts warn that there is still a possibility of short-term fluctuations. Long-term investors may find it safer to invest in smaller amounts of gold and silver during price drops than a large sum. Short-term traders should be cautious because prices could still change dramatically in any direction.
