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 rate India, after surging nearly 32% in January.
The sell-off was not limited to gold alone. Silver prices in India also crashed massively, recording their steepest-ever decline of nearly 20% in the last 48 hours. This comes after an extraordinary rally in silver, which had jumped around 71% in January alone.
The primary reason behind the sharp fall in gold rate in India today is the steep decline in international spot gold prices, which slipped below $5,000 per ounce overnight on Friday. The fall was triggered by speculation that the US Federal Reserve may adopt a more hawkish stance, raising concerns over prolonged higher interest rates.
Meanwhile, spot silver prices tumbled over 26%, while the US dollar index recovered, putting additional pressure on safe-haven assets such as gold and silver.
Despite the sharp correction, gold premiums in India rose to a more than decade-high, indicating strong domestic investment demand even amid heightened volatility.
Gold Rate in India Today
As of today, 31st January, the 22-carat gold rate in India crashed by Rs.7900 per 10 grams to cost Rs. 1,47,200 per 10 grams. While the 24-carat gold prices today fell by Rs. 8620 and are currently retailing at Rs.1,60,580 per 10 grams. Similarly, the 18-carat gold rate today also declined by Rs 6,460 per 10 grams to cost Rs 1,20,440.
In a similar manner, the 100 grams of 22-carat gold stand at Rs 14,72,000 after dropping Rs 79,000. While the 24-carat gold price in India per 100 grams is now retailing at Rs 16,05,800, which dropped by Rs.86,200.
MCX Gold and Silver Futures Update
At the Fridays closes, On the Multi Commodity Exchange (MCX), gold futures slated to mature on Feb 5th, also witnessed a massive drop before closing at Rs. 1,49,075 per 10 grams after slipping 0.39%. Similarly, silver futures, which are set to expire on March 5, settled at Rs 2,91,922..