MARKET BRIEF: Historic Gold Crash & Pre-Budget Volatility **Current Status (Jan 31, 2026)** Gold prices have suffered a historic collapse, registering their steepest single-day decline in decades. After touching record highs earlier this week (near **₹1.83 lakh** per 10g), the yellow metal witnessed a brutal correction, shedding approximately **12% intraday** in international markets. **Market Data & Key Moves** * **MCX Gold:** Plummeted to trade near **₹1.69 lakh** levels, erasing over **₹11,000–₹14,000** per 10g in a single session. * **Spot Gold (Global):** Broke below the psychological **$5,000/oz** mark, retreating sharply from the **$5,600** peak. * **Silver Carnage:** Silver futures crashed even harder, plunging **15–17%** to slip below **₹3.35 lakh** per kg. * **Currency Impact:** The correction was driven by a sharp rebound in the **US Dollar Index (DXY)**, which strengthened on news of a potential hawkish Federal Reserve Chair nomination (Kevin Warsh), dampening safe-haven demand. **Drivers of the Crash** * **Profit Booking:** The "parabolic" rally of January (up ~32%) triggered massive liquidation of leveraged positions. * **Fed Jitters:** Renewed expectations of a tighter US monetary policy boosted the dollar, making non-yielding bullion expensive. * **Budget 2026 Focus:** Traders are now eyeing the Union Budget (Feb 1) for potential changes in import duties or gold-related policies, adding to the nervousness. **Outlook** Volatility is expected to remain extreme. With prices testing critical support zones near **₹1.60 lakh**, the market’s focus shifts entirely to the Budget announcement and the US dollar's trajectory. **Next Step:** I can provide a technical summary of the key support levels for MCX Gold and Silver to watch during the Budget session if you need precise entry/exit zones.