CME Group has raised margin requirements for gold and silver futures after historic price crashes triggered extreme volatility. The hikes, effective Monday, aim to stabilise markets as collateral demands rise across precious metals. The move follows steep declines in gold and silver, intensifying pressure on leveraged traders.
Benchmark indices and broader markets have historically shown subdued performance on Union Budget day, with less than 1% movement. However, a week after the event, both Nifty and Sensex have shown stronger gains. Three months post-budget, while the Nifty experienced significant swings, it generally trended upwards, with the exception of a notable fall in 2020.
Gold prices slumped 12% in their worst single-day fall in over a decade after a stronger US dollar triggered profit booking. The sharp correction followed record highs and renewed macro re-pricing. With MCX open on Budget Day, investors will closely track key support levels and volatility cues.
Bitcoin’s “digital gold” appeal is fading as traders pivot to precious metals. Gold and silver funds saw strong inflows, while Bitcoin-linked funds faced withdrawals. Crypto-native platforms now offer commodity perps, reflecting growing investor preference for metals as hedges and speculative assets amid dollar weakness and heightened macro uncertainty.
Madhusudan Kela’s portfolio faced sharp volatility with nine stocks plunging 15–45% over the past seven months, even as he introduced one fresh bet in Q3.
Gold and silver demand remains robust despite record-high prices, driven by investment, industrial use, and central-bank accumulation. China and India continue strong consumption, while Western markets increase allocations for diversification and hedging. Tight supply and resilient global appetite suggest that upward price momentum for precious metals may persist in 2026.
Budget 2026 arrives amid weak market sentiment, thin participation, and geopolitical pressures. With fiscal constraints and limited scope for major tax changes, the focus is expected on structural reforms like power sector and IBC revamps. While these could support long-term equities, short-term market revival may remain muted.
Bitcoin hovered near $84,000 as markets reacted to Kevin Warsh’s nomination as US Federal Reserve Chair. While short-term volatility persists amid ETF outflows and macro uncertainty, reduced leverage and oversold conditions may support a near-term rebound across major cryptocurrencies if sentiment stabilises.
The upcoming Budget must focus not just on attracting capital but improving how efficiently it circulates through the economy. Faster corporate restructurings, stronger recovery mechanisms, better mobilisation of household gold and simpler capital-gains rules can meaningfully enhance market depth, investor confidence and long-term capital formation, earning the Budget full marks from markets.
Benchmark indices and broader markets have historically shown subdued performance on Union Budget day, with less than 1% movement. However, a week after the event, both Nifty and Sensex have shown stronger gains. Three months post-budget, while the Nifty experienced significant swings, it generally trended upwards, with the exception of a notable fall in 2020.
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