On February 3, 2026, gold prices in India saw a notable drop, continuing the steep decline that has been occurring in recent days after the Union Budget 2026 was announced. The precious metal has undergone significant corrections, with reports of one of the largest declines in recent memory, affected by global market signals, reactions after the budget presentation, and a widespread sell-off in precious metals.
Present Gold Rates in India (as of February 3, 2026)
The rates are estimates and are mainly sourced from prominent platforms like Goodreturns.in, with differences by region due to local taxation, making charges, and jeweler profit margins. The prices pertain to hallmark gold and do not include any additional GST or TCS where it applies.
24 Karat Gold (99.9% purity): ₹15,317 for each gram
For 10 grams: ₹1,53,170 (down by roughly ₹7,410 from previous market levels in key cities such as Mumbai).
22 Karat Gold (91.6% purity, often used in jewelry): ₹14,040 for each gram
For 10 grams: ₹1,40,400 (down by about ₹6,800).
18 Karat Gold: ₹11,488 per gram
For 10 grams: Approximately ₹1,14,880 (notable decreases aligning with the higher purities).
City-wise Overview (24K per 10 grams, approximate):
Mumbai: ₹1,53,170
Chennai: About ₹1,52,180 (slight variation, with 24K priced at ₹15,218 per gram)
Hyderabad/Bangalore/Kolkata: Ranges similarly between ₹1,53,000 and ₹1,57,000, with recent significant declines reported (including drops up to ₹90,500 in some heavyweight categories during recent trading sessions).
Delhi: Slightly elevated in certain listings due to local circumstances, yet generally consistent with national trends.
Note: These refer to retail spot/jewellery rates. Futures on MCX exhibited fluctuations, with April contracts experiencing some recovery, although the overall market sentiment remained negative. Globally, spot gold recently fluctuated between USD 4,660 and USD 4,887 per ounce, which has played a role in the decline when converted to INR, influenced by a stronger USD and various macroeconomic conditions.
Primary Factors Influencing Today's Gold Prices
The steep drop in gold prices is mainly linked to market reactions following the Union Budget 2026 announcement by Finance Minister Nirmala Sitharaman. Participants in the market anticipated or responded to fiscal policies that may have diminished the appeal of gold as a safe-haven investment or changed the dynamics for gold imports. Although no significant alterations to customs duties on gold were identified as encouraging news, the market experienced significant selling pressure overall.
Gold has decreased over ₹90,500 per 100 grams in some overnight sessions, with total declines surpassing ₹2.73 lakh per 100 grams within just days.
The silver market reflected a similar pattern, dropping drastically (for example, ₹50,000/kg reductions noted in Delhi).
Global influences have also contributed, including fluctuations in international bullion markets, with a marked downturn in gold during recent overseas trading.
Domestic demand remains low after the festive season, as buyers have adopted a wait-and-see stance during this correction.
Recent Developments and Future Outlook
Gold prices had risen sharply in January 2026 (increasing over 20% in certain periods), hitting all-time highs before the present plunge. The correction brings the price of 24K gold closer to earlier levels from this year but remains high compared to last year.
Experts believe this decrease might offer buying possibilities for long-term investors and jewelry purchasers, especially if there are no further duty increases. Nevertheless, continued volatility is anticipated amid global economic instability, developments in US-India trade (including recent discussions regarding tariff adjustments), and fluctuations in the rupee (with USD/INR around ₹91.51).
