Key Points:
- Silver prices fell sharply by ₹19,386 to ₹2,99,711 per kilogram from ₹3,19,097 per kilogram
- 24-karat gold declined by ₹3,099 to ₹1,51,128 per 10 grams, while 22-karat gold dropped to ₹1,38,433 per 10 grams
- 18-karat gold prices decreased from ₹1,15,670 to ₹1,13,346 per 10 grams
- International markets showed mixed trading, gold down 0.12% at $4,831 per ounce, silver down 1.01% at $93 per ounce
- Price correction attributed to Trump’s WEF speech resolving to negotiate Greenland issue and postpone February 1 tariffs on European countries
Bullion markets witnessed a dramatic price correction on Thursday as gold and silver recorded substantial declines, providing much-needed relief to buyers who had been waiting for a market correction. The sharp drop, driven by easing global volatility, saw silver prices plummet by an eye-watering ₹19,386 per kilogram, while gold registered a significant decrease across all carat categories.
According to data released by the India Bullion Jewelers Association (IBJA), the price of silver crashed from ₹3,19,097 per kilogram to ₹2,99,711 per kilogram, marking one of the steepest single-day declines in recent bullion market history. The massive correction in silver prices reflects renewed investor confidence in global stability following key diplomatic developments at the World Economic Forum.
Gold Prices Across Karats
The gold market experienced broad-based declines across different purity levels. The benchmark 24-karat gold, which is considered the purest form, fell by ₹3,099 to settle at ₹1,51,128 per 10 grams, down from ₹1,54,227 per 10 grams. The popular 22-karat gold, widely used in jewelry making, decreased from ₹1,41,272 per 10 grams to ₹1,38,433 per 10 grams. Similarly, 18-karat gold prices dropped from ₹1,15,670 per 10 grams to ₹1,13,346 per 10 grams.
Market analysts suggest this price correction will bring substantial relief to consumers planning wedding purchases and festive season buying, as gold prices had remained elevated for several weeks due to global uncertainty and geopolitical tensions.
International Market Trends
In international markets, precious metals traded mixed as investors digested the latest geopolitical developments. At the time of writing, gold was down 0.12 percent at $4,831 per ounce, while silver traded 1.01 percent lower at $93 per ounce. The relatively modest decline in international markets compared to domestic prices suggests that Indian bullion markets were pricing in a higher risk premium that has now corrected.
Trump’s Davos Speech Triggers Correction
Experts attribute the decline in domestic gold and silver prices to reduced international instability following US President Donald Trump’s address at the World Economic Forum in Davos, Switzerland. During his speech, Trump announced that he would resolve the Greenland issue through negotiations rather than coercion, and crucially, he postponed tariffs on European countries that were scheduled to take effect on February 1.
These diplomatic overtures signaled a de-escalation in trade tensions that had been weighing on global markets, reducing the safe-haven appeal of precious metals. When geopolitical risks subside, investors typically move away from gold and silver toward riskier assets, leading to price corrections.
Market Outlook
Bullion traders expect the price relief to stimulate buying activity in the coming days, particularly as the wedding season approaches in many parts of India. The significant correction may also attract institutional investors who had been waiting on the sidelines for a favorable entry point. However, market participants remain cautious about whether this downward trend will sustain, as global economic uncertainties and central bank policies continue to influence precious metal prices.
The India Bullion Jewelers Association has advised retailers to adjust their pricing accordingly and expects increased footfall in jewelry stores over the weekend as consumers take advantage of the lower prices. Financial advisors suggest that while the current dip presents a buying opportunity, investors should remain mindful of the inherent volatility in precious metal markets.
