Gold Price Prediction: Will Budget 2026 Crash Gold Rates?

Gold Price Prediction: Will Budget 2026 Crash Gold Rates?

Everyone is asking the same question: Is now the right time to buy gold, or will prices crash tomorrow?

With the Union Budget 2026 scheduled for Sunday, Feb 1st, the gold market is on edge. While gold has been a top performer, three massive international and local factors are pointing toward a potential price drop.

1. The "Import Duty" Bomb

The Indian jewelry industry is pushing for a major cut in gold import duty. If Finance Minister Nirmala Sitharaman slashes the duty by even 3-5%, domestic gold prices in India will drop by ₹2,000 to ₹4,000 per 10 grams instantly.

2. The US Dollar Strength

Globally, the US Dollar is showing resilience. When the Dollar stays strong, gold—which pays no interest—becomes less attractive to big institutional investors. We are seeing a shift where "Big Money" is moving from bullion back into bonds.

3. Strategic Profit Booking

Gold has hit record highs recently. Expert traders are now "booking profits," meaning they are selling their gold to lock in gains. This increase in market supply is naturally cooling down the red-hot prices we saw last month.

The Verdict: Buy or Wait?

If you are looking to buy jewelry or invest, waiting until the Budget speech ends at 1 PM tomorrow is the smartest move. A tax change could save you thousands of rupees in a single day.

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