Precious metal markets witnessed a sharp correction on January 31, 2026, as both gold and silver prices eased after a record-breaking rally, surprising investors and jewellery buyers alike.
According to live market data, 24-carat gold in Delhi traded around ₹16,934 per gram, while silver hovered near ₹3,949 per 10 grams, translating to approximately ₹3.94 lakh per kilogram in most major cities. Prices were marginally varied across regional markets, with some southern cities quoting slightly higher silver rates.
After Record Highs, Profit Booking Takes Over
The slide comes on the back of intense profit booking by institutional players and a technical correction in global bullion markets. After several sessions of relentless gains, both metals had risen to multi-year highs in the previous week, driven by strong investor interest in safe-haven assets. However, traders pushed for selling positions once prices peaked, leading to the recent pullback.
Market analysts note that bullion had been in overbought territory, prompting funds and traders to lock in gains. The strengthening of the US dollar and changing expectations for global interest rate movements also contributed to the cooling off in gold and silver prices.
City-Wise Price Snapshot
City-wise data showed gold and silver prices holding close to multi-session averages:
In Delhi, 24K gold was listed at around ₹16,934 per gram.
Mumbai and Hyderabad showed similar gold rates, slightly lower than Delhi.
Silver in southern and western markets traded near ₹3.94–₹4.05 lakh per kilogram.
Impact on Jewellery Demand
The high price levels earlier in the month had already dampened retail demand for jewellery in 2026, a trend that carried over from 2025 when rising bullion prices were linked to a 24 per cent slump in jewellery purchases. High prices often delay buying decisions among consumers, particularly ahead of wedding and festival seasons.
Outlook: Volatile But Attractive for Long-Term Investors
Despite the short-term correction, experts believe the overall outlook for precious metals remains positive over the medium term. Silver, in particular, has shown strong gains over recent months, reflecting robust industrial demand alongside investment interest.
For now, the market is in a consolidation phase, with traders and buyers watching closely for the next key support levels before committing to fresh positions.
