Gold and Silver Prices Experience Sharp Correction on February 1, 2026
The bullion market witnessed a significant downturn on Saturday, February 1, 2026, as both gold and silver prices tumbled sharply. This decline was primarily driven by profit booking from investors, coupled with a global market rout triggered by a strengthening US dollar.
Silver Prices Plunge Nearly 19% in a Single Day
Silver prices saw a dramatic sell-off, plunging by nearly 19 per cent to settle at Rs 3.12 lakh per kilogram. According to data from the All India Sarafa Association, silver tumbled by Rs 72,500, or 18.85 per cent, to Rs 3,12,000 per kg, inclusive of all taxes. This marked the second consecutive session of steep losses for the precious metal, following its record high of Rs 4,04,500 per kg on Thursday.
Gold Prices Also Weaken, Falling Over 2%
Gold prices were not spared from the correction, weakening by over 2 per cent. The price of gold fell by Rs 3,500, or 2.07 per cent, to Rs 1,65,500 per 10 grams, inclusive of all taxes. In the previous trading session, gold of 99.9 per cent purity had declined by 7.6 per cent after hitting a record high of Rs 1,83,000 per 10 grams.
Monthly Performance Shows Strong Gains Despite Correction
Despite the sharp daily declines, both metals closed the month of January with substantial gains. Silver rose by Rs 73,000, or 30.5 per cent, from Rs 2,39,000 per kg on December 31, 2025. Similarly, gold gained Rs 27,800, or 20.2 per cent, in January, compared to Rs 1,37,700 per 10 grams at the end of the previous year.
Market Dynamics and Investor Sentiment
The recent volatility in gold and silver prices highlights the dynamic nature of the bullion market. Factors such as global economic conditions, currency fluctuations, and investor behavior play crucial roles in determining price movements. The profit booking observed on February 1 reflects a cautious approach among investors, who are capitalizing on the recent highs to secure gains.
This correction serves as a reminder of the inherent risks and opportunities in precious metal investments, emphasizing the importance of staying informed about market trends and economic indicators.
