New Delhi: Gold and silver prices declined sharply on Wednesday, extending a broader correction in precious metals markets after both commodities touched record highs earlier this year.
According to the India Bullion and Jewellers Association (IBJA), the price of 1kg of silver fell by Rs 3,761 to Rs 2.65 lakh, while the price of 10 grams of 24-carat gold dropped by Rs 1,116 to Rs 1.58 lakh.
The decline comes months after both metals witnessed a dramatic rally in January, driven by strong investor demand, global economic uncertainty and safe-haven buying.
Gold Retreats From January Peak
Gold had started the year at around Rs 1.33 lakh per 10 grams on December 31, 2025, before surging to an all-time high of Rs 1.76 lakh on January 29, 2026.
However, prices have weakened in recent weeks amid profit-booking by investors and changing global market conditions.
Current gold prices are now nearly Rs 18,000 lower than the January peak, indicating a significant cooling in momentum after the sharp rally seen at the start of the year.
Silver Witnesses Higher Volatility
Silver has experienced even steeper fluctuations than gold over the past few months.
The metal began the year at around Rs 2.30 lakh per kilogram before climbing to a record high of Rs 3.86 lakh on January 29, marking one of the sharpest rallies in recent years.
Since then, prices have corrected heavily. Over the past 49 days, silver prices have declined by more than Rs 1.21 lakh from their peak levels.
Market analysts have pointed to silver’s traditionally higher volatility compared with gold, with industrial demand trends and speculative trading contributing to sharper swings in prices.
Global Factors Influence Domestic Prices
Bullion prices in India are influenced by a combination of international gold and silver rates, currency movements, import duties and domestic demand trends.
Recent corrections in global commodity markets, coupled with investors booking profits after January’s record rally, have contributed to the decline in domestic bullion prices over the past few weeks.
