Gold, Silver and Copper Crash to Lower Circuits as Markets Turmoil Spreads
Gold, Silver and Copper Crash to Lower Circuits as Markets Turmoil Spreads
Metals plunge on MCX ahead of Budget 2026; gold, silver and copper hit lower circuits while Bitcoin slides, ETFs brace for volatility.
India's metal markets staged a sharp retreat on Sunday as MCX conducted a special trading session ahead of the Union Budget 2026. Gold and silver tumbled with prices swinging into and out of their lower circuits, a reflection of a global risk-off mood, profit-taking after a solid rally, and fresh budget cues. Copper also slipped, amplifying the broad-based metal rout as investors pulled back from riskier bets and shifted to safer assets.
Gold futures were down by roughly 9% to around Rs 1.37 lakh per 10 grams, while silver prices slid about 9% intraday, touching the lower circuit. Silver's drop pulled it from historical highs and pressured related sectors. Copper prices fell by around 8% as zinc and other metals also eased on a stronger dollar and cautious investor sentiment.
Bitcoin, the largest cryptocurrency by market value, extended its slide and traded near the $77,000 mark, slipping more than 8% in tandem with the metal rout. The weakness across risk assets came as traders digested global earnings, inflation signals, and expectations from the budget presentation.
Analysts pointed out that the wipeout in precious metals has been substantial, with the rout estimated to erase about Rs 63 lakh crore from the metal markets globally. The sell-off accentuated concerns about demand and macro risks, while profit booking after a secular rally weighed on prices.
To curb volatility, BSE imposed a 20% circuit limit on Gold and Silver ETFs after the sharp price declines, compelling them to reference the T-1 NAV to avoid wild swings. The exchange's move follows the bullion meltdown that sent futures into the red and unsettled ETF investors.
With Budget 2026 on the horizon, market participants will be eyeing policy signals and potential tax or duty tweaks that could nick future demand. For now, the mood remains cautious, even as some buyers see potential in lower prices over the medium term.
Investors are reminded that volatility remains high until clarity emerges from policy announcements and global macro cues.
