After a sharp increase of Rs 2,160 per sovereign yesterday, gold prices saw a correction today falling by Rs 640 per sovereign. The yellow metal is now priced at Rs 1,15,360 per sovereign (8 grams) and Rs 14,420 per gram, marking a drop of Rs 80 from yesterday’s rates of Rs 1,16,000 per sovereign and Rs 14,500 per gram.
Market analysts attribute the fall to the strengthening of the US dollar following stronger-than-expected US jobs data for January 2026. The data reduced expectations of early interest rate cuts, making gold slightly less attractive to investors as it does not yield interest.
Meanwhile, silver prices remained stable at Rs 270 per gram, or Rs 2,70,000 per kilogram, showing little fluctuation over the past few days.
Despite the recent dip, gold remains significantly higher compared to the same period last year. On February 20, 2025, 22-carat gold was priced at Rs 64,560 per sovereign (Rs 8,070 per gram). This marks a substantial year-on-year increase of Rs 50,800, or approximately 78.6%.
Over the past five days, 22-carat gold prices showed notable volatility: February 19 – Rs 1,16,000 per sovereign, February 18 – Rs 1,13,840, February 17 – Rs 1,14,560, February 16 – Rs 1,15,520, and February 14 – Rs 1,16,480. Silver prices, meanwhile, hovered around Rs 265–270 per gram during the same period.
The movement in precious metal prices reflects global economic trends, currency fluctuations, and investor sentiment, with gold remaining a preferred hedge against inflation and currency volatility despite short-term corrections.
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