Gold and silver prices have sharply corrected in India after hitting record highs, worrying many investors. Heavy profit booking, a strong US dollar, and higher trading margins on exchanges triggered the fall.
As of February 2, 2026, MCX gold is trading between ₹1.47–1.65 lakh per 10 grams, while silver has dropped to ₹2.65–3.12 lakh per kg. Globally, spot gold is at $4,645 per ounce, down over 2%, and silver trades near $78 per ounce, down 0.5%.
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Reasons Behind the Sharp Fall
The correction follows an extremely fast rally. Gold had reached $5,626 per ounce and silver $121 per ounce in recent weeks. Such rapid gains led to profit-taking by traders and investors.
Additional triggers include:
- CME margin hikes: Gold margin up to 8%, silver 15%
- Stronger US dollar, putting pressure on commodity prices
- Post-Budget 2026 selling, which amplified the fall in India
Silver was the most volatile, dropping as much as 33% in two sessions and even hitting lower circuits on exchanges. Despite the dip, January gains remain strong, with gold up nearly 20% and silver up 30% for the month.
Expert Opinions for Indian Investors
Analysts say this is a healthy market correction, not a reversal. Experts from JM Financial and Enrich Money recommend staggered buying on dips rather than investing all at once.
Medium-term targets:
- Gold: $6,000–$8,000 per ounce
- Silver: Caution advised due to high volatility
Support levels to watch on MCX:
- Gold: around ₹1.44 lakh per 10 grams
- Silver: around ₹2.65 lakh per kg
Should You Buy Now?
For long-term investors, phased buying of gold is still recommended, as it remains a reliable hedge against inflation and geopolitical uncertainty. Silver is riskier in the short term due to sharp swings. Conservative or short-term investors should wait for prices to stabilise.
