Will gold and silver prices drop or become more expensive after Union Budget 2026? What investors expect

Nirmala Sitharaman, India's Finance Minister, will be presenting the Union Budget for the ninth consecutive time this year on February 1, 2026. With just Budget 2026 a few days away, citizens of every section of the country are eagerly awaiting something big again from the finance minister. Budget 2026 has become a hot topic of discussion among taxpayers, small and medium businesses, farmers, and others. Similarly, investors are eager to know whether gold and silver prices will drop or become more expensive after the budget is presented in the Parliament next month.

Will gold and silver prices drop after Budget 2026?

Since India imports gold on a large scale, import duty plays a significant role in its prices in the retail market. If the central government reduces import duty on gold and silver, the prices are expected to fall, whereas if the duty is increased, the bullion market is likely to shoot up more.

In India, the current gold import duty for commercial imports is 6 percent, which includes 5 percent basic Customs Duty + 1 percent AID (Agriculture Infrastructure and Development) Cess with an additional 3 percent GST on the value.

In the previous budget, the government reduced the gold import duties from 15 percent to 6 percent to curb smuggling activities and encourage legal imports.

Apart from this, the global geopolitical developments also play a vital role in gold prices. If the American Dollar gets stronger, the gold prices on the global market come under pressure. If USD somehow gets stronger in the coming days, the gold and silver prices are likely to come down in the Indian market as well. However, investors are still awaiting the Union Budget 2026 and expecting a reduction in import duties on bullion.