Precious metals extend losses as investors book profits and prefer cash amid global uncertainty.
New Delhi (Economy India): Gold and silver prices witnessed a sharp decline on Tuesday, with both precious metals falling significantly from their recent record highs. According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold dropped by ₹1,258 per 10 grams, while silver declined by ₹3,725 per kilogram.
The latest correction reflects changing investor sentiment as global uncertainties and profit-booking activities continue to weigh on bullion markets.
Gold Falls to ₹1.55 Lakh per 10 Grams
As per IBJA data, the price of 24-carat gold fell to ₹1.55 lakh per 10 grams, down from the previous session.
Despite the recent decline, gold remains substantially higher than its levels at the beginning of the year. However, the precious metal has corrected from its record peak reached earlier in 2026.
Gold Price Journey in 2026
| Period | Price (10 grams) |
|---|---|
| December 31, 2025 | ₹1.33 lakh |
| All-Time High (January 29, 2026) | ₹1.76 lakh |
| Current Price | ₹1.55 lakh |
Gold is now trading approximately ₹21,000 below its all-time high, indicating a significant correction after a strong rally earlier this year.
Silver Slides to ₹2.61 Lakh per Kg
Silver has experienced an even steeper decline compared to gold.
According to IBJA, silver prices fell by ₹3,725 per kilogram to ₹2.61 lakh per kg.
Silver Price Journey in 2026
| Period | Price (Per Kg) |
|---|---|
| December 31, 2025 | ₹2.30 lakh |
| All-Time High (January 29, 2026) | ₹3.86 lakh |
| Current Price | ₹2.61 lakh |
Silver has now declined by approximately ₹1.25 lakh per kilogram from its record high achieved in January, making it one of the sharpest corrections seen in the precious metals market this year.
Why Are Gold and Silver Prices Falling?
Traditionally, geopolitical tensions and conflicts tend to push investors toward safe-haven assets such as gold and silver. However, market experts say the current situation is different due to changing investor behavior.
1. Investors Prefer Cash Over Metals
Amid growing uncertainty in global markets and ongoing tensions in the Middle East, many investors are choosing to increase their cash holdings instead of maintaining exposure to precious metals.
Financial experts explain that investors are selling part of their gold and silver holdings to maintain liquidity and prepare for potential market volatility.
The preference for cash during uncertain periods has increased selling pressure in bullion markets.
2. Profit Booking After Record Highs
Gold and silver witnessed extraordinary gains earlier this year, reaching historic highs in January 2026.
Following the sharp rally, institutional investors and traders have started booking profits by selling holdings accumulated at lower levels.
This increase in supply has contributed significantly to the recent decline in prices.
3. Correction After Strong Rally
Market analysts believe the current fall is also part of a natural correction following an extended period of rapid price appreciation.
Both gold and silver had delivered exceptional returns over the past year, making a pullback expected from a technical perspective.
What Investors Should Watch
Analysts suggest that future price movements in gold and silver will largely depend on:
- Global geopolitical developments
- Interest rate decisions by major central banks
- Inflation trends worldwide
- US dollar movements
- Investment demand for safe-haven assets
- Global economic growth outlook
If uncertainty intensifies further, precious metals could regain strength. However, continued profit booking and strong demand for liquidity may keep prices under pressure in the short term.
Key Highlights
- Gold fell ₹1,258 to ₹1.55 lakh per 10 grams.
- Silver dropped ₹3,725 to ₹2.61 lakh per kg.
- Gold is now ₹21,000 below its all-time high.
- Silver has declined ₹1.25 lakh from its record peak.
- Profit booking and preference for cash are driving the correction.
- Global uncertainty continues to influence bullion prices.
Market
Despite the recent correction, long-term fundamentals for gold and silver remain supported by inflation concerns, geopolitical risks, and central bank purchases.
Experts believe that while short-term volatility may continue, precious metals remain an important component of diversified investment portfolios.
Investors are advised to monitor market developments closely and adopt a long-term perspective when evaluating investment opportunities in gold and silver.
(Economy India)
