The historic rally in the gold rate in India appears to have come to an abrupt halt, as the yellow metal witnessed a sharp sell-off over the past two sessions. Gold prices plunged by more than Rs 1,80,000 per 100 grams for 24-carat gold, marking the biggest-ever two-day fall in gold prices in India, after the metal had surged nearly 32% in January.
The sell-off was not limited to gold. Silver prices in India also crashed sharply, recording their steepest-ever decline of nearly 20% in the last 48 hours. This follows an extraordinary rally in silver, which had jumped around 71% in January alone, making it one of the best-performing assets globally.
The sharp fall in the gold rate in India today was largely driven by a steep decline in international prices. Spot gold slipped below the $5,000 per ounce mark overnight on Friday, triggering heavy profit booking across global markets. The decline was fuelled by speculation that the US Federal Reserve may adopt a more hawkish stance, raising concerns that interest rates could remain higher for longer.
At the same time, spot silver prices tumbled over 26%, while a recovery in the US dollar index added further pressure on safe-haven assets such as gold and silver. Despite the sharp correction, gold premiums in India climbed to a more than decade-high, signalling strong domestic investment demand even amid heightened volatility.
Gold rate in India today (January 31)
As of Friday, the 22-carat gold rate in India fell sharply by Rs 7,900 per 10 grams to Rs 1,47,200 per 10 grams. The 24-carat gold price declined by Rs 8,620 per 10 grams and is currently retailing at Rs 1,60,580 per 10 grams, while the 18-carat gold rate dropped by Rs 6,460 per 10 grams to Rs 1,20,440.
On a larger scale, 100 grams of 22-carat gold now stands at Rs 14,72,000 after a fall of Rs 79,000, while 100 grams of 24-carat gold is priced at Rs 16,05,800, down Rs 86,200.
MCX gold and silver futures update
On the Multi Commodity Exchange, gold futures expiring on February 5 closed lower at Rs 1,49,075 per 10 grams, slipping 0.39% by the end of Friday’s session. Meanwhile, silver futures expiring on March 5 settled sharply lower at Rs 2,91,922 per kg, reflecting intense selling pressure across the precious metals complex.