New Delhi (Economy India): Gold and silver prices recorded strong gains for the second consecutive day on February 19, driven by renewed safe-haven demand and supportive global cues. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold rose by ₹3,151 to ₹1.55 lakh per 10 grams, while silver surged ₹8,432 to ₹2.45 lakh per kilogram.
Market participants said easing trading conditions in futures markets and rising geopolitical uncertainty have revived investor interest in precious metals.
Gold and Silver Gains So Far in 2026
Bullion prices have remained volatile this year but continue to trend higher overall:
- Gold: Up ₹21,540 per 10 grams so far in 2026
- Silver: Up ₹14,810 per kilogram in 2026
Earlier this year, on January 29, both metals touched record highs:
- Gold: ₹1.76 lakh per 10 grams (all-time high)
- Silver: ₹3.86 lakh per kilogram (all-time high)
Why Gold Prices Differ Across Cities: 4 Key Reasons
Transportation and Security Costs
Moving gold between cities involves high fuel, insurance, and security expenses. Cities located farther from import hubs often see higher local prices due to added logistics costs.
Volume of Consumption
Regions such as South India account for nearly 40% of India’s gold consumption. Higher bulk purchases allow jewellers to pass on volume discounts to customers, keeping prices relatively lower.
Local Jewellery Associations
Each state or city has its own jewellery association that determines daily rates based on local demand-supply dynamics.
Inventory Cost of Jewellers
Jewellers holding older inventory purchased at lower prices may offer gold at comparatively cheaper rates than those buying at current market prices.
What Is Driving the Rise in Gold and Silver Prices?
Margin Relief in MCX–NSE Trading
The removal of additional margins on gold and silver futures has reduced trading costs, encouraging higher participation from investors.
Rising Global Geopolitical Tensions
Escalating tensions in the Middle East, particularly between the US and Iran, and stalled Russia–Ukraine negotiations have increased demand for safe-haven assets.
Expectations of US Fed Rate Cuts
Signals from the US Federal Reserve suggesting possible interest rate cuts later this year have boosted gold demand, as lower rates reduce the opportunity cost of holding non-yielding assets.
Value Buying After Recent Correction
After a sharp correction in recent sessions, prices appeared attractive, prompting fresh buying by jewellers and institutional investors.
Two Things to Check Before Buying Gold
Buy Only Certified Gold
Always purchase gold hallmarked by the Bureau of Indian Standards (BIS). The BIS hallmark includes an alphanumeric code that certifies purity and caratage.
Cross-Check Daily Prices
Verify the gold rate on the day of purchase from reliable sources such as the IBJA website. Prices vary for 24-carat, 22-carat, and 18-carat gold.
How to Identify Genuine Silver: 4 Simple Tests
- Magnet Test: Pure silver does not stick to a magnet
- Ice Test: Ice melts faster on real silver due to high thermal conductivity
- Smell Test: Genuine silver has no smell; fake silver may smell like copper
- Cloth Test: Rubbing silver with a white cloth leaves black marks if it is real
Indian Households Hold Gold Worth More Than India’s GDP
Indian households now own gold worth over $5 trillion (₹450 lakh crore)—exceeding India’s nominal GDP of $4.1 trillion (₹370 lakh crore).
According to a report by Morgan Stanley, Indian families collectively hold nearly 34,600 tonnes of gold, making the country one of the world’s largest private holders of the precious metal. Rising prices have further increased gold’s share in household wealth.
Economy India View
With global uncertainty, expectations of interest rate cuts, and strong domestic demand, gold and silver continue to remain attractive as safe-haven assets. However, analysts caution that volatility may persist at elevated price levels.
(Economy India)
