New Delhi (Economy India): Gold and silver prices witnessed a sharp correction this week, retreating from record highs as investors booked profits and physical demand weakened. Gold prices fell by nearly ₹14,000, while silver recorded a steep decline of over ₹94,000 per kg in the domestic bullion market.
Gold prices declined by ₹13,717 to ₹1,52,078 per 10 grams, compared to ₹1,65,795 recorded on January 30. Silver prices dropped from ₹3,39,350 per kg to ₹2,44,929 per kg, marking one of the steepest weekly falls in recent months.
Market experts said the correction comes after both precious metals touched all-time highs, triggering aggressive profit booking by investors. Additionally, physical demand weakened at elevated price levels, especially from jewellery buyers and industrial users.
Why Gold and Silver Prices Fell
Profit Booking:
With gold and silver prices hitting record levels in recent weeks, investors chose to lock in gains, leading to heavy selling pressure across bullion markets.
Weak Physical Demand:
After touching peak levels, demand for physical gold and silver softened. High prices dampened jewellery purchases, while concerns over industrial demand also weighed on silver prices.
What Buyers Should Keep in Mind
Jewellery buyers are advised to exercise caution and ensure quality while making purchases during price volatility.
- Buy only certified gold: Consumers should always check for the Bureau of Indian Standards (BIS) hallmark, which confirms purity and carat value.
- Cross-check prices: Gold prices vary based on purity—24 carat, 22 carat and 18 carat—and should be verified through reliable sources such as the India Bullion and Jewellers Association (IBJA).
How to Identify Pure Silver
Experts suggest simple checks to verify silver authenticity:
- Magnet test: Pure silver does not stick to a magnet.
- Ice test: Ice melts faster on real silver due to high conductivity.
- Smell test: Genuine silver has no smell, unlike fake alloys.
- Cloth test: Rubbing silver on a white cloth leaves black marks if it is real.
Market participants expect bullion prices to remain volatile in the near term, influenced by global cues, currency movements and interest rate expectations. Analysts advise long-term investors to track fundamentals closely rather than short-term price swings.
(Economy India)
