Silver Prices Drop ₹41,000: Gold Settles at ₹1.51 Lakh Level

The Indian bullion market witnessed a significant correction in precious metal prices today, February 6. According to data released by the India Bullion and Jewellers Association (IBJA), silver prices plummeted by ₹13,155 to settle at ₹2,41,184 per kg. This follows a previous closing of ₹2,54,339. Over the last two trading sessions, silver has become cheaper by a cumulative total of ₹41,278, reflecting high volatility in the commodity segment.

Gold prices followed a similar downward trajectory, while the price of 24-carat gold decreased by ₹1,013 today, bringing the rate to ₹1,51,489 per 10 grams from the previous level of ₹1,52,502. In the span of just two days, gold prices have seen a reduction of ₹6,669. Market observers attribute this trend to shifting global economic indicators and a correction after the recent record-breaking rallies in the domestic market.

Detailed Gold Rates by Purity

The pricing of gold in the bullion market varies Notably based on its purity. As of today, 24-carat gold is priced at ₹1,51,489 per 10 grams. For those looking at jewelry-grade gold, 22-carat gold is currently trading at ₹1,38,764 per 10 grams. Also, 18-carat gold stands at ₹1,13,617, while 14-carat gold is priced at ₹88,621 per 10 grams. These rates serve as a benchmark for retail jewelers across the country, though local taxes and making charges may vary.

Historical Context and Recent Volatility

The current prices represent a notable decline from the all-time highs recorded recently. On January 29, gold reached a peak of ₹1,76,121 per 10 grams, while silver hit a record high of ₹3,85,933 per kg. 60 lakh and gold fell by ₹26,000.41 lakh.

Market Analysis and Expert Perspectives

According to market analysts, the sharp decline of nearly 15% in gold prices over recent sessions has led to a phase of price stabilization. Experts suggest that as prices have cooled down from their peaks, there is a visible increase in buying activity at lower levels. Analysts state that the strengthening of the US Dollar and changes in international trade dynamics are primary drivers for this correction. Market participants are reportedly adopting a cautious approach, focusing on gradual accumulation rather than bulk transactions amidst the ongoing price fluctuations.

Guidelines for Physical Gold Purchases

When purchasing gold from retail jewelers, industry experts emphasize two critical factors for consumers. First, it's essential to buy only Bureau of Indian Standards (BIS) hallmarked gold. This certification, which includes a unique alphanumeric HUID (such as AZ4524), ensures the purity of the metal. Second, consumers are advised to cross-verify the daily rates from reliable sources like the IBJA website. Since prices differ for 24K, 22K, and 18K gold, verifying the weight and the prevailing market rate is crucial for a fair transaction.

To sum it all up, the recent drop in gold and silver prices provides a significant update for the domestic bullion market, while while the prices have retreated from their historic peaks, the future trajectory will likely be influenced by global geopolitical factors and monetary policy decisions by central banks.