India’s gold market is witnessing a notable downturn after prices hit historic highs in early 2026. After climbing to a record ₹1,80,779 per 10 grams in January, gold has slid sharply — falling by around ₹24,500 or roughly 13.5%.
This correction in gold prices has attracted attention from traders and investors alike, sparking questions about whether India’s long-beloved safe-haven asset could drop below ₹1 lakh per 10 grams.
Recent Price Trends
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In January 2026, gold reached an all-time high of ₹1,80,779/10g.
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By mid-February, gold was trading around ₹1,54,937/10g — down about 13.5% from its peak.
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Silver prices also dipped in the broader commodities market, though not as sharply.
Drivers of the Price Slide
Change in Dollar Dynamics
One major reason for the decline is changes in how global economies — especially Russia — view the U.S. dollar. Russia’s shift back toward trading in dollars has weakened earlier attempts by BRICS nations to push “gold-based trade,” reducing demand for gold as a dollar alternative.
Central Banks and Demand Shifts
For years, heavy buying by BRICS central banks supported rising gold prices. But that artificial demand has diminished, easing upward pressure on prices.
Market Correction After Rally
Prices often correct after strong rallies. Profit-booking by traders — selling when prices are high after a rally — contributed to the fall.
What Analysts Predict
Market analysts believe the current downturn may just be starting. Some forecasts suggest international prices could fall toward $3,000 per ounce, which might pull Indian gold below ₹1 lakh per 10 grams.
Investor Takeaway
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Gold’s downward trend presents a potential buying opportunity for long-term investors.
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Prices may continue to fluctuate based on global currencies, inflation, and demand patterns.
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Silver’s volatility also affects sentiment in precious metals markets.
