3 February 2026 — Precious metals markets in India and globally remain highly volatile, reflecting rapid price swings for both gold and silver — with sharp falls followed by rebounds within the same trading sessions. Investors, consumers, and traders alike are watching price action closely as key economic trends play out.
Current Benchmark Rates (India)
- Gold (24K): Trading around ₹1,51,000–₹1,53,000 per 10 g, after recent downward pressure from market corrections.
- Silver: Highly volatile, with some reports showing prices near ₹2.80 lakh/kg, down sharply from recent multi-month highs.
Prices vary slightly across major cities like Mumbai, Delhi, Chennai, Hyderabad and Bengaluru, as local factors and demand influence retail bullion pricing.
Why Prices Fell: Sell-Off and Profit-Taking Pressure
In late January, gold and silver had surged to near record highs — with silver pushing above ₹4 lakh/kg and gold also testing elevated levels. But early February saw a strong correction as:
- Profit taking intensified after extended rallies.
- Global macro cues shifted, including stronger dollar momentum and liquidity constraints.
- Volatility increased in commodities markets, prompting short-term traders to reduce exposure.
This sharp reversal erased much of the late-January gains, eroding bullish momentum.
Rebound: Buyers Step In at Lower Levels
Despite the recent sell-off, gold and silver staged a rebound in today’s session:
- Silver rebounded ~6%, reclaiming a level near ₹2.5 lakh/kg after hitting lower circuits.
- Gold prices climbed ~3% as value buying emerged among investors.
This bounce-back suggests that after sharp drops, market participants are finding support at lower price levels — viewing them as long-term buying opportunities or a reset point for fresh positions.
Key Drivers Affecting Prices
Global Market Influence
International bullion prices have been fluctuating due to macroeconomic developments, including:
- Shifts in U.S. Federal Reserve policy expectations (affecting interest rates and safe-haven demand).
- Adjustments in margin requirements on futures contracts, contributing to short-term liquidity effects.
- Changing currency valuations — especially the dollar’s strength — which inversely impacts gold/silver prices.
These global cues often translate quickly into domestic bullion markets, particularly in futures trading on MCX.
Domestic Factors
In India, several elements are influencing the market:
- Budget impact & customs duty sentiment: The recent Union Budget did not deliver expected incentives for bullion, leading to short-term price pressure.
- Profit booking by traders after a prolonged rally created selling pressure.
- Consumer behavior: Some buyers are adopting a “wait-and-watch” stance in hopes of further declines before purchasing jewelry or investment bars/coins.
Expert Views & What Buyers Should Know
Analysts suggest that the recent rebound after the sell-off doesn’t necessarily signal a full sustained uptrend, but reflects natural market correction dynamics:
- Support zones around key levels (such as ₹1.4–₹1.5 lakh for gold and ₹2.4–₹2.6 lakh for silver per kg) may hold as psychological floors.
- Short-term volatility remains high; investors should consider risk management, especially if trading futures or leveraging positions.
- Long-term demand fundamentals — such as safe-haven interest, jewelry demand in India, and global investment flows — still favor precious metals over extended horizons.
City-Wise Snapshot (Indicative)
| City | Gold (24K per 10 g) | Silver per kg |
|---|---|---|
| Delhi | ~₹1,51,000 | ~₹2,80,000 |
| Mumbai | ~₹1,51,000 | ~₹2,80,000 |
| Chennai | ~₹1,52,000 | ~₹2,80,000 |
| Bengaluru | ~₹1,51,000 | ~₹2,80,000 |
| Hyderabad | ~₹1,51,000 | ~₹2,80,000 |
| Rates approximate based on current market averages. |
Conclusion: Market in Flux but Active
Today’s gold and silver markets reflect heightened flux — with prices swinging sharply but also finding rebounds as value buying returns. Traders and investors should remain alert to global economic cues, currency trends, and local demand factors before making significant purchases or trades.
Whether you’re a buyer eyeing lower rates, an investor watching for a rebound, or a collector monitoring bullion trends, the current volatility underscores the importance of timing, market signals, and risk awareness in the precious metals space.
Also Read : Gold & Silver React Sharply to Union Budget 2026: Prices Crash, SGB Rules Change and Market Impact
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Last Updated on: Tuesday, February 3, 2026 12:14 pm by Praneetha Kattamidi | Published by: Praneetha Kattamidi on Tuesday, February 3, 2026 12:13 pm | News Categories: Brand Post, Economy, Trending
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