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Below Reaction On Budget by Mr. Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities

The Union Budget FY27 kept markets on edge as the fiscal deficit target was pegged at 4.3%, while STT on futures was raised to 0.05% and on options to 0.15%, a move that is likely to dent participation in F&O and reduce speculative volumes in commodities as well.

There was no update on import duty for bullion, and with sharp weakness already seen in CME on Friday, domestic gold and silver reacted negatively. Gold has corrected nearly 20% from its peak of Rs.1,82,500 to around Rs.1,47,800, while silver has seen a much sharper 36% decline from Rs. 4,20,000 to near Rs.2,65,650.

Going ahead, gold is expected to remain volatile but relatively more stable compared to silver, which may continue to witness exaggerated swings. In the current phase, caution is advisable — a watch-and-learn approach is better until volatility subsides and price structures stabilize.

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