Gold and Silver Prices Drop Across India on February 2, 2026 After Record Highs

Gold and silver price today sees sharp correction across India as bullion markets react to profit booking and global pressure, impacting investors nationwide

New Delhi: On Monday, February 2, 2026, gold and silver prices dropped throughout India as both metals continued to decrease after reaching all-time highs in late January. Over the past few weeks, precious metals had surged strongly. However, traders and investors have now started booking profits, which has pushed prices lower in both physical markets and futures trading.

Although gold showed some stability during parts of the trading session, silver remained under heavier pressure. As a result, bullion markets across the country witnessed sharp volatility. At the same time, global economic signals and reactions to the Union Budget 2026 impacted investor confidence.

Market Overview

To begin with, gold and silver had climbed to record levels in January 2026. Gold futures on the Multi Commodity Exchange (MCX) had touched nearly ₹1,80,779 per 10 grams, while silver futures had surged to around ₹4,20,048 per kilogram.

However, investors decided to lock in profits after the sharp rally. Consequently, prices corrected significantly. On February 2, gold futures traded near ₹1,50,849 per 10 grams. Meanwhile, silver futures slipped to around ₹2,91,922 per kilogram. Clearly, silver has corrected more sharply compared to gold.

Because of this sudden decline, traders across India are moving cautiously. Many buyers are waiting for prices to stabilise before making fresh purchases.

Delhi

In Delhi, 24-carat gold traded at approximately ₹16,073 per gram. Meanwhile, 22-carat gold stood near ₹14,735 per gram, and 18-carat gold was priced around ₹12,059 per gram. Silver in the national capital traded close to ₹3,50,000 per kilogram.

Jewellers reported steady inquiries, especially from wedding buyers. However, many customers are waiting to see if prices fall further before making large purchases.

Mumbai (Maharashtra)

In Mumbai, 24-carat gold was priced at around ₹16,058 per gram. The 22-carat rate stood near ₹14,720 per gram, while 18-carat gold traded at approximately ₹12,044 per gram. Silver prices in Mumbai were also around ₹3,50,000 per kilogram.

Traders in the financial capital said that even after the correction, prices remain much higher than last year’s levels. Therefore, investors are carefully watching global trends before taking new positions.

Chennai (Tamil Nadu)

Chennai continued to show slightly higher gold prices compared to many other cities. Here, 24-carat gold traded at about ₹16,255 per gram. The 22-carat rate was near ₹14,900 per gram, and 18-carat gold stood at roughly ₹12,800 per gram.

Silver prices in Chennai were significantly higher at around ₹4,18,900 per kilogram. Local demand patterns and regional pricing factors often keep Chennai’s silver rates above other cities.

Kolkata (West Bengal)

In Kolkata, 24-carat gold was available at approximately ₹16,058 per gram. Meanwhile, 22-carat gold traded near ₹14,720 per gram, and 18-carat gold stood at ₹12,044 per gram. Silver prices were close to ₹3,50,000 per kilogram.

Jewellers reported moderate footfall as buyers closely monitor the market before making festive or wedding purchases.

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Bengaluru (Karnataka)

Bengaluru recorded 24-carat gold at around ₹16,058 per gram. Prices for 22-carat gold were over ₹14,720 per gram, while 18-carat gold was around ₹12,044 per gram. Silver in the city traded around ₹3,50,000 per kilogram.

Market experts described the overall sentiment as cautious but stable. Investors are avoiding aggressive buying until global signals become clearer.

Hyderabad (Telangana)

In Hyderabad, 24-carat gold traded at roughly ₹16,057 per gram. The 22-carat rate stood near ₹14,719 per gram, and 18-carat gold was priced around ₹12,043 per gram. Silver prices remained close to ₹3,50,000 per kilogram.

Retailers said demand remains selective, with investors waiting for either further correction or strong recovery signs.

Pune, Ahmedabad, Lucknow and Gurgaon

In cities such as Pune, Ahmedabad, Lucknow and Gurgaon, gold prices remained similar to the national average. Silver prices in these cities remained about ₹3,50,000 per kilogram.

Although there are minor changes due to transportation costs, local taxes, and demand conditions, overall pricing trends remain stable throughout India.

Why Are Gold and Silver Prices Falling?

Profit Booking After Record Highs

First, the main reason behind the fall is profit booking. Since gold and silver had surged to record highs in January, many investors decided to sell and secure gains. As more traders exited positions, prices dropped quickly.

Impact of Union Budget 2026

Second, the Union Budget 2026 created short-term volatility. Even though the government did not announce major changes in customs duties on gold or silver, broader fiscal announcements influenced trading activity. As a result, bullion markets reacted sharply.

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Global Economic Factors

At the same time, international developments played an important role. A stronger US dollar put pressure on precious metals worldwide. Since gold and silver are priced in dollars, a stronger dollar usually reduces demand.

In addition, uncertainty around US interest rate expectations and Federal Reserve policy created nervousness in global markets. As a result, investors cut their exposure to bullion.

ETF Selling Pressure

Gold and silver exchange-traded funds (ETFs) also witnessed heavy selling. Some bullion-linked ETFs fell by up to 20 percent. Institutional investors trimmed holdings, which added to the downward pressure.

Silver More Volatile Than Gold

Compared to gold, silver has fallen more sharply. This happens because silver serves both as a precious metal and an industrial metal. Changes in industrial demand expectations increase volatility.

As a result, silver has corrected nearly 30 percent from its recent peak, making it more volatile than gold during this period.

Year-on-Year Comparison

Despite the recent fall, gold and silver remain significantly higher than last year. Retail gold currently trades between ₹14,700 and ₹16,000 per gram depending on purity and city.

Similarly, silver prices remain elevated compared to year-ago levels, even after the sharp correction.

Market Outlook:

Market watchers believe the dip is a short-term correction rather than a long-term reversal. They encourage investors to pay particular attention to global currency patterns, US Federal Reserve decisions, inflation data, and geopolitical happenings.

Experts recommend avoiding rash decisions and instead focusing on long-term strategy. Many feel gold will regain strength when global volatility eases.

Conclusion

On February 2, 2026, gold and silver prices in India falled sharply after touching record highs in January. Major cities such as Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad had similar price patterns, with very minor variations between areas.

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For now, investors and buyers across India are watching global and domestic developments carefully to understand the next direction of Gold and silve price today and overall bullion market movement.