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Live Gold & Silver Price Update
India Market Rates & Historic Crash Analysis – February 1, 2026
Note on Update Scope: This page has been updated with the latest available data from authoritative financial sources, covering the historic market crash of January 31, 2026, and prices for February 1, 2026. However, specific price data or market events for dates between February 2, 2026, and April 1, 2026, were not available in the provided sources.
Historic Market Correction: Gold & Silver Crash from Record Highs
The Indian bullion market witnessed one of its most volatile periods at the end of January 2026. After scaling unprecedented peaks, gold and silver prices crashed dramatically on January 31, marking the biggest-ever two-day fall for gold and the steepest decline for silver. Prices showed extreme volatility on February 1, Budget Day, with futures hitting lower circuits before a partial rebound. This report provides a complete analysis of the crash, explores the global trends that set the stage, and offers a detailed investment forecast for the coming months.
24K Gold (99.9%)
Per Gram | MCX Futures: ~₹1.43 Lakh/10g
22K Gold (91.6%)
Per Gram | Standard for Jewelry
Silver (999)
Per Kilogram | ~₹380 per gram
City-Wise Gold Rates for February 1, 2026 (per gram)
| City | 24K Gold | 22K Gold | 18K Gold |
|---|---|---|---|
| Mumbai | ₹ 16,058 | ₹ 14,720 | ₹ 12,044 |
| Delhi | ₹ 16,073 | ₹ 14,735 | ₹ 12,059 |
| Chennai | ₹ 16,255 | ₹ 14,900 | ₹ 12,800 |
| Kolkata | ₹ 16,058 | ₹ 14,720 | ₹ 12,044 |
| Bangalore | ₹ 16,058 | ₹ 14,720 | ₹ 12,044 |
| Hyderabad | ₹ 16,058 | ₹ 14,720 | ₹ 12,044 |
Note: These rates reflect the market after the sharp correction. Chennai typically commands a premium. Rates exclude making charges and GST.
Silver Rates for February 1, 2026
| City | Per Gram | Per Kilogram |
|---|---|---|
| Mumbai | ₹ 379 | ₹ 3,79,900 |
| Delhi | ₹ 379 | ₹ 3,79,900 |
| Chennai | ₹ 379 | ₹ 3,79,900 |
| Kolkata | ₹ 379 | ₹ 3,79,900 |
| Bangalore | ₹ 379 | ₹ 3,79,900 |
| Hyderabad | ₹ 379 | ₹ 3,79,900 |
Note: Silver crashed nearly 20% in 48 hours after an extraordinary rally where it had jumped around 71% in January alone.
The January 31 Crash: A Timeline of the Fall
The Record Peak (Jan 29-30)
Gold hit a record high of ₹1,83,000 per 10g and silver soared to ₹4,04,500 per kg, capping a massive monthly rally. This parabolic rise was driven by frantic speculative buying, creating a technically overbought market that was vulnerable to a sharp reversal.
Crash Day (Jan 31)
Gold plunged over ₹1.8 Lakh per 100g. 24K gold fell ₹8,620/10g to ₹1,60,580. Silver collapsed by ₹1.08 Lakh/kg in 24 hours, its worst-ever fall. The sell-off was exacerbated by automated trading systems and margin calls, triggering a cascade of selling.
MCX Futures Impact
Gold Feb futures closed at ₹1,49,075/10g. Silver March futures settled at ₹2,91,925/kg, hitting lower circuit limits. The exchange’s circuit breaker mechanisms were activated multiple times, temporarily halting trading to prevent a complete market freefall.
Budget Day Volatility (Feb 1)
Futures plunged another 6-9% at open, hitting lower circuits before a partial rebound. Gold MCX live price was at ₹1,42,200/10g. This whipsaw action is characteristic of a market searching for a new equilibrium after a seismic event, with bears and bulls battling for control.
Why Did Gold & Silver Prices Crash?
Profit Booking at Peak
The primary trigger was aggressive profit-booking by investors after prices reached historic highs, leading to a sharp technical correction. Short-term traders who entered the market during the rapid upswife quickly exited, booking substantial gains and creating the initial downward momentum.
Global Hawkish Fed Speculation
International spot gold fell below $5,000/oz on speculation the US Federal Reserve might adopt a more hawkish stance, raising concerns over prolonged higher interest rates. Higher rates increase the opportunity cost of holding non-yielding assets like gold, making bonds and savings accounts more attractive.
Stronger US Dollar & Budget Jitters
A recovering US Dollar Index pressured precious metals. Domestic volatility was amplified by uncertainty ahead of the Union Budget 2026 and speculation about import duty changes. Investors feared the government might increase duties to curb the trade deficit, potentially dampening domestic demand.
Shift in Demand Dynamics
While investment demand (ETFs) remained strong, high prices softened physical jewellery buying. The market was assessing the impact of imports on the rupee and trade deficit. Retail buyers postponed purchases, waiting for price stability and clarity from the Budget, removing a key support pillar for prices.
Global Market Trends Influencing Indian Bullion
The Indian gold and silver market does not operate in isolation. The historic crash, while dramatic in its local context, was part of a larger global repricing of precious metals. Understanding these international undercurrents is crucial for forecasting future movements. The rally leading to the peak and the subsequent collapse were both amplified by interconnected global factors.
The US Dollar and Federal Reserve Policy
The number one global driver of gold prices is the US Dollar and the interest rate policy of the Federal Reserve. Gold is priced in dollars globally; a stronger dollar makes gold more expensive for holders of other currencies, suppressing demand. The speculation in late January that the Fed might delay or reduce the pace of interest rate cuts in 2026 provided the fundamental trigger for the global gold sell-off. This shifted capital away from non-yielding assets.
Central Bank Buying Spree
For several years prior to 2026, central banks worldwide, led by China, Russia, Turkey, and India, have been net buyers of gold, diversifying their reserves away from the US dollar. This structural demand created a solid floor under gold prices and contributed to the multi-year bull run. However, the pace of this buying can fluctuate. Any sign of a slowdown in official sector purchases removes a key source of consistent demand, leaving the market more susceptible to volatility from financial investors.
Geopolitical Tension and Safe-Haven Flows
Gold’s traditional role as a safe-haven asset was a key factor in its rise to record highs. Ongoing geopolitical conflicts, trade tensions, and global economic uncertainty drove investors towards perceived safety. The violent correction indicates that, at least temporarily, the motive of profit-taking overwhelmed the motive of safety. The market effectively priced out some of the “geopolitical risk premium” that had been built into prices.
Silver: The Industrial Metal Wildcard
Silver’s price action is often more volatile than gold’s due to its dual identity as both a precious and a critical industrial metal. The 71% January rally was unsustainable because, while investment demand surged, the physical industrial demand from sectors like solar panels, electronics, and electric vehicles could not keep pace with such a rapid price increase. The crash represented a harsh reconciliation of financial speculation with fundamental industrial economics.
Investment Analysis & Market Forecast for 2026
Following a shock event like the January 31 crash, the path forward is critical for investors. The market is at an inflection point. The following analysis breaks down the technical and fundamental outlook to provide a reasoned forecast for the rest of 2026, along with strategic advice for different types of investors.
Technical Analysis & Price Outlook
Short-Term Forecast (Next 4-8 Weeks): High Volatility & Consolidation
Expect continued volatility as the market digests the crash. Prices are likely to enter a consolidation phase, trading within a range. For gold, key support is now seen around the ₹1,40,000-1,42,000 per 10g level (where it found a floor on Feb 1). Resistance will be at the ₹1,55,000-1,58,000 level. A decisive break above ₹1,60,000 would signal the resumption of the bull trend, while a break below ₹1,38,000 could trigger another leg down. Silver will remain even more volatile, with support near ₹2,85,000/kg and resistance at ₹3,40,000/kg.
Medium-Term Forecast (Q2-Q3 2026): Directional Move Emerges
The consolidation phase will resolve into a clearer directional trend by mid-year. The primary determinant will be the actual policy path of the US Federal Reserve and the strength of the global economy. If inflation remains sticky and rate cuts are pushed further into the future, gold may struggle to make new highs and could trade with a downward bias. Conversely, any sign of economic weakness prompting a dovish Fed pivot would be powerfully bullish for gold.
Long-Term & Year-End Forecast (Q4 2026): Bullish Bias Intact
Despite the severe correction, the long-term macroeconomic backdrop for gold remains supportive. High global debt levels, ongoing geopolitical fragmentation, and the continued de-dollarization efforts by central banks are structural trends. It is plausible for gold to reclaim its highs and potentially target ₹1,90,000-2,00,000 per 10g by the end of 2026 if the fundamental drivers reassert themselves. Silver, if industrial demand remains robust, could outperform gold in a renewed bull market.
📈 Key Price Levels to Watch (24K Gold / 10g)
Immediate Support: ₹1,40,000 – ₹1,42,000 (Post-crash low)
Major Support: ₹1,38,000 (Breach indicates deeper correction)
Immediate Resistance: ₹1,55,000 – ₹1,58,000 (First hurdle for recovery)
Major Resistance & Bull Target: ₹1,83,000 (Previous All-Time High) > ₹1,90,000
Investment Strategy & Recommendations
For New Investors / Lump Sum Buyers
Strategy: Practice extreme patience. Avoid buying during “panic” rallies in the immediate aftermath. Wait for the market to show stability. Use a “phased accumulation” approach. Divide your intended capital into 3-4 parts. Invest one part if gold tests the ₹1,42,000 support and holds. Invest subsequent parts on a confirmed breakout above ₹1,58,000 or on a successful retest of support. This disciplined approach avoids catching a falling knife and confirms market direction.
For Existing Investors (In Loss After the Crash)
Strategy: Do not panic sell. The crash has already occurred. Evaluate your investment horizon. If you are a long-term investor (3+ years), view this as a violent correction within a longer-term bull market. Use the consolidation phase to average down your cost if the market establishes a clear support base. If your position is leveraged (futures), ensure you have adequate margin to withstand further volatility.
For Systematic Investors (SIPs in Gold ETFs/Sovereign Gold Bonds)
Strategy: CONTINUE YOUR SIPs. This is the ideal strategy for moments like these. A crash allows your regular investment to buy more units at lower prices, effectively bringing down your overall average cost. The volatility is your friend in a long-term SIP. Do not stop or pause your systematic plans; this is when they add the most value through rupee-cost averaging.
For Physical Buyers (Jewellery, Coins, Bars)
Strategy: This is an excellent opportunity for planned purchases like weddings or festivals. After a crash, jewellers may offer better value with lower making charges. However, wait 1-2 weeks for the wholesale market to fully stabilize. Compare prices across multiple reputable jewellers and always ask for a detailed break-up (metal price, making charge, GST). Focus on purity (22K or 24K) and buy from BIS-hallmarked sellers only.
Official Sources for Rate Validation
For verification and the most current rates, always refer to these official and authoritative sources:
- Multi Commodity Exchange of India (MCX) – Official futures & spot prices.
- India Bullion and Jewellers Association (IBJA) – National benchmark rates.
- GoodReturns Gold Rate Page – Updated city-wise rates.
- ClearTax Gold & Silver – Daily price tracking and charts.
- World Gold Council – Global gold market authority and research.
