Gold prices in India remained range-bound on February 2, 2026, after a sharp fall post-Budget 2026, as investors weighed fiscal cues and global market forces.
Gold prices in India stayed relatively steady on February 2, 2026, a day after the Union Budget 2026 was announced, as bullion markets digested both fiscal policy news and global economic cues. While the announcement did not contain surprises for the bullion sector, traders remained cautious, keeping gold in a narrow trading range even after a recent sharp correction from record highs.
Analysts say that the combination of profit booking, stable bond yields, and investors awaiting further global signals helped anchor prices rather than trigger fresh volatility.
As of Monday, gold prices reflected modest movement across major Indian cities:
Retail Gold Rates (Per Gram) — February 2, 2026
City-wise figures largely mirrored national averages, with slightly higher premiums in Chennai and other southern markets due to local demand variations.
Gold experienced a significant run-up at the end of January, touching recent highs as investors sought safe havens amid macroeconomic uncertainty. However, after those peaks, bullion underwent a notable correction:
Despite this pullback, gold remains significantly higher year-on-year, indicating sustained long-term demand.
On the Multi-Commodity Exchange (MCX), gold futures also showed limited movement:
Silver futures remained more volatile, with sharper swings reflecting industrial demand uncertainty and stronger profit booking.
Profit booking by investors who bought at elevated levels contributed to the drop in gold prices from late January highs. Traders took advantage of gains as the Budget approached, leading to short-term selling pressure.
Global factors also played a role. While the Budget did not change import duties or add new fiscal pressure on bullion, international gold prices and currency movements influenced domestic pricing. A stronger US dollar and stable global bond yields reduced some of the safe-haven demand typically seen in uncertain times.
Market watchers say that while the current narrow range reflects caution, gold could regain momentum if global economic risks or currency weakness intensify. A stable Budget outcome, without adverse tax changes for bullion, has removed one layer of uncertainty, allowing investors to focus on broader economic signals.
Silver, on the other hand, remains more volatile due to mixed demand from both industrial and investment segments. Its recent swings underscore the metal’s sensitivity to shifting market conditions.
Gold prices in India stayed range-bound on February 2, 2026, following the Budget 2026 presentation. While bullion has retreated sharply from recent record highs, it remains well above year-ago levels. Investors appear cautious, choosing to wait for clearer global cues before making major buying decisions in bullion markets.
