Is MCX open for Budget on February 1?

The Multi Commodity Exchange (MCX) will remain open for trading on Sunday, February 1, on account of the Union Budget 2026 presentation. Stock exchanges BSE and NSE will also conduct trading sessions despite the day being a Sunday.

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MCX said in an earlier circular that a special live trading session will be held on February 1. The special session will run from 8:45 AM to 8:59 AM, followed by the regular trading session from 9:00 AM to 5:00 PM. The client code modification session will be held from 9:00 AM to 5:15 PM.

Silver and gold prices crash

MCX March silver contract plunged 16% to ₹3,36,154 per kg on January 30. MCX April gold contract fell 8% to ₹1,69,600 per 10 gm.

Spot silver on COMEX fell over 14% to $99.77 an ounce. Gold prices slid below $5,000 per ounce on COMEX.

Factors behind the fall

Precious metal prices declined as investors booked profits and the US dollar strengthened on speculation surrounding the appointment of a new US Federal Reserve Chair.

Independent analyst Ross Norman told Reuters that while a significant part of the rise in silver had been based on sound fundamentals, there was speculative excess in the market that is now being corrected.
Gold remained on track for its strongest monthly gain since 1999 on safe-haven demand despite the recent decline.

U.S. Fed Chair speculation

Market participants reacted to reports that Kevin Warsh, a former Fed governor, could be nominated as the next U.S. Federal Reserve Chair. Warsh is seen as an advocate of lower interest rates but is considered more cautious on heavy monetary stimulus compared to other potential candidates.

Damien Boey, portfolio strategist at Wilson Asset Management in Sydney, told Reuters that Warsh prefers lower rates but wants the Fed to have a smaller balance sheet.

On the prediction market site Polymarket, the implied probability of contracts betting that US President Donald Trump will nominate Warsh to lead the central bank surged to 94% from 35% earlier in the day.

U.S. Treasury yields and rate expectations

The yield on the U.S. 10-year Treasury bond rose 4.6 basis points to 4.273%.

Fed funds futures are pricing an implied 84.6% probability that the U.S. central bank will hold rates steady at its next meeting in March. This is slightly lower than the previous day's 87.5% probability, according to the CME Group's FedWatch tool.