Patna: Gold and silver prices declined on Monday, extending a downward trend that has emerged in recent weeks after both precious metals touched record highs earlier this year.
According to data released by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by Rs 864 per 10 grams to Rs 1.56 lakh. Silver also registered a decline, with the price of one kilogram dropping by Rs 450 to Rs 2.63 lakh.
The latest fall comes after a strong rally in the opening weeks of 2026, when investors flocked to precious metals amid global uncertainty and expectations of economic volatility.
Gold Remains Below January Peak
Gold began the year at around Rs 1.33 lakh per 10 grams and continued to climb before reaching an all-time high of Rs 1.76 lakh on January 29.
Despite remaining significantly higher than its level at the start of the year, gold has now retreated by nearly Rs 20,000 from its record peak.
Market analysts attribute the decline largely to profit-booking by investors who accumulated gold during the rally and chose to sell after prices reached historic highs.
Silver Records Steeper Correction
Silver has experienced even greater volatility than gold.
The metal started the year at around Rs 2.30 lakh per kilogram before surging to an all-time high of Rs 3.86 lakh on January 29.
Since then, silver prices have fallen sharply. At the current level of Rs 2.63 lakh per kilogram, the metal is trading more than Rs 1.23 lakh below its peak recorded 123 days ago.
Analysts say silver’s industrial demand component often makes it more volatile than gold during periods of market uncertainty.
Why Are Prices Falling?
Traditionally, geopolitical tensions and armed conflicts tend to support demand for gold and silver, which are widely regarded as safe-haven assets.
However, market conditions have evolved differently in recent weeks.
Analysts point to a growing preference among investors for holding cash amid uncertainty linked to developments in the Middle East and other global economic concerns. Rather than increasing their exposure to precious metals, some investors have chosen to liquidate holdings to maintain liquidity.
At the same time, widespread profit-booking has added selling pressure to the market. As prices reached record highs earlier this year, many investors opted to lock in gains, increasing supply and contributing to the correction.
Market Outlook
Despite the recent decline, both gold and silver continue to trade well above their levels at the start of the year. Market participants are now closely watching global geopolitical developments, central bank policies and currency movements for signals on the next direction of precious metal prices.
Analysts suggest that continued uncertainty in international markets could keep gold and silver volatile in the weeks ahead.
