Turmoil on Budget Day... Gold and silver prices have witnessed a major upheaval

Gold and silver prices saw a major crash last week, and both precious metals plummeted in a single day. While silver became more than 30% cheaper in a single day, gold also slipped by about 17%. On Sunday, Budget Day, trading in gold and silver is taking place on the commodity market MCX along with the stock market, and as soon as the market opened, gold and silver crashed again. The price of 1 kg of silver suddenly dropped by ₹27,000 at the opening, while gold also plummeted like silver, and its price fell by more than ₹9,000.

Silver crashes again on Budget Day

On the last trading day of the previous week, gold and silver crashed badly. Notably, just the day before, on Thursday, silver had made history by crossing the ₹4 lakh mark for the first time, and the price of silver with a March 5th expiry reached a new all-time high of ₹4,20,048, but the very next day it fell by ₹1.28 lakh to ₹2,91,922 per kg, and on Budget Day, Sunday, it became 9% or about ₹27,500 cheaper, falling to ₹2,65,652 per kilogram. Gold also plummets as soon as trading opens

Gold fared similarly to silver, and the 10-gram 24-karat gold rate for the April 2nd expiry on MCX, after touching a historic high of Rs 1,93,096 last Thursday, crashed, falling by Rs 42,247 per 10 grams to Rs 1,50,849 per 10 grams. On Sunday, as soon as trading began on MCX, it slipped by more than 6%. The gold rate fell by Rs 9,000 per 10 grams, reaching Rs 1,43,205.

Expectations were already high

The budget is being presented on Sunday this time, and due to this, trading is also taking place in the commodity market on a holiday. A fall in gold and silver prices was already expected. It was believed that the negative investor sentiment caused by the sharp decline last week could lead to heavy selling on Budget Day, and this prediction proved true as soon as futures trading began.

Summary

Gold and silver prices have witnessed a major upheaval, and during trading that began on Sunday due to the budget, gold and silver rates plummeted once again as soon as the market opened.