What goes up must come down — unless you bought gold in January and hoped otherwise. After an electrifying rally that took 24-karat gold to an all-time high of Rs 17,885 per gram on January 29, the precious metal has given back a sizable chunk of those gains. On Thursday, 24K gold traded at Rs 15,442 per gram across major Indian cities, down roughly 13.7% from its peak.
City-Wise Snapshot
In Delhi, 24K gold traded at Rs 15,457 per gram; 22K at Rs 14,170. Chennai quoted Rs 15,622 for pure gold. Mumbai, Kolkata, Bengaluru, and Hyderabad all hovered in a tight band between Rs 15,400 and Rs 15,600 — a sign that the correction is broad-based and not driven by local demand quirks.
Silver's Brutal Day
But the real drama was in silver. The white metal crashed 9.3% on international markets, dragging Indian silver prices below Rs 20,000 per 10 grams. Unlike gold — which benefits from safe-haven demand — silver has significant industrial exposure, and fears of a global tech slowdown hit it disproportionately hard.
Why the Correction?
Three forces are converging. First, classic profit-taking after a record-breaking rally. Second, a stronger US dollar — which traded near two-week highs — makes gold more expensive in rupee terms and dampens buying. Third, the upcoming RBI policy decision has created a wait-and-watch mood, with traders reluctant to take fresh positions ahead of the announcement.
Buy the Dip or Wait?
Analysts remain divided. Bulls argue that geopolitical risks — the New START treaty expiration, Middle East tensions, and trade war uncertainty — will drive gold higher in the medium term. Bears point to the velocity of the correction and warn that another leg down toward Rs 14,500 is possible before support kicks in. For the average Indian buyer eyeing wedding season purchases, the advice is familiar: stagger your buying.