MUMBAI, February 2, 2026, 12:50 IST
- 24-carat gold falls Rs 9,050 to Rs 151,530 per 10 grams; silver drops Rs 20,000 to Rs 300,000 per kg in India.
- Global selloff knocks gold about 9% and silver more than 13%; CME lifts trading margins as volatility spikes.
- India’s Economic Survey still points to firm gold demand in 2026; JP Morgan says central-bank buying can push prices higher.
Gold and silver prices in India fell sharply on Monday, extending losses into a fourth straight session and jolting the bullion market. Ten grams of 24-carat gold fell Rs 9,050 to Rs 151,530, while silver slid Rs 20,000 to Rs 300,000 per kilogram, with 22-carat gold at Rs 138,900 per 10 grams. (Pragativadi News)
The drop tracked a wider retreat in precious metals and other commodities after a frantic January run-up. Gold fell about 9% and silver more than 13% in early Asian trade, and CME Group raised margin requirements — the cash traders must post to hold futures positions — after Friday’s sharp selloff, a Reuters report said. Commonwealth Bank of Australia strategist Vivek Dhar called it “more hawkish” talk around U.S. policy and said the move looked like “a correction and a buying opportunity.” (Reuters)
The timing matters in India because the country’s own policy writers have been warning that the surge is bleeding into the real economy. India’s Economic Survey 2025-26 said gold’s jump was powered by global uncertainty, a weak dollar and investors hunting safe havens, and it argued demand would stay strong in 2026 even if prices swing. It said gold rose from about $2,607 an ounce in 2025 to over $4,300 by year-end and topped $5,100 in late January, while prices on the Multi Commodity Exchange (MCX) — India’s main bullion futures exchange — more than doubled over the year; Chief Economic Advisor V Anantha Nageswaran pointed to low “real” rates (interest rates after inflation) and geopolitical risks, while noting policymakers were watching the hit to inflation and the trade balance from a higher import bill. (The Bridge Chronicle)
Banks are already trying to separate the crash from the longer trend. JP Morgan said it expects central-bank and investor demand to drive gold to $6,300 an ounce by year-end, even as spot gold slid to $4,677 on Monday. The bank forecast central banks will buy 800 tonnes of gold in 2026 and said it remains “firmly bullishly convicted” on gold, while turning more cautious on silver after its spike. (Reuters)
Physical markets had been flashing stress even before the plunge. In late January, dealers in India charged premiums — the mark-up over global spot prices — of up to $121 an ounce over official domestic prices, with China’s premium as high as $32, according to a Reuters report. Mumbai wholesaler Ashok Jain said investors were “paying a premium”, and Hong Kong dealer Peter Fung said “small investors still want to buy” even as domestic Indian prices hit a record 180,779 rupees per 10 grams; the World Gold Council had said India’s gold demand was likely to fall in 2026 after an 11% drop last year. (Reuters)
For jewellers and small investors, the whipsaw is awkward. Falling headline prices can pull in bargain hunters, but sharp intraday swings often make buyers pause and wait.
But the downside case is still alive. Higher margins can drain liquidity if leveraged traders are forced to unwind, while a firmer dollar or higher real yields typically weigh on bullion.
For now, traders are watching whether the selloff turns into a grinding correction or a fast rebound, the kind you get when a crowded trade snaps back. Either way, the metal’s role as both a safety play and a pressure point for India’s import bill is back in the foreground.
