Key Points
- Gold prices spiked by ₹3,160 per 10 grams on February 28, marking the sharpest single-day jump in weeks.
- 24-carat pure gold reached ₹1,64,880, while jewelry-grade 22-carat gold climbed to ₹1,51,150.
- Silver experienced a massive single-day gain of ₹10,000, closing at a record ₹2,95,000 per kilogram.
- Global factors, including U.S. tariff uncertainties and aggressive buying by central banks, are driving the domestic rally.
- High wedding season demand is keeping the market buoyant despite the unprecedented price levels.
The final day of February 2026 has etched itself into the history of the Indian bullion market, with precious metal prices shattering previous records. Across the country, the cost of the yellow metal surged as a combination of geopolitical tension and domestic wedding demand created a perfect storm for buyers. On Saturday, February 28, the price of 24-carat gold jumped to ₹1,64,880 per 10 grams, a staggering increase of ₹3,160 from the previous day’s closing.
This sudden escalation has left middle-class families in a precarious position. For those purchasing jewelry for upcoming weddings, 22-carat gold is now retailing at ₹1,51,150 per 10 grams. Market experts suggest that while the price is high, the “fear of missing out” on even higher future prices is keeping demand remarkably steady.
Silver Shatters Barriers with ₹10,000 Hike
Not to be outdone, silver recorded an even more aggressive percentage increase. The industrial and ornamental metal gained ₹10,000 in a single trading session, propelling the price to ₹2,95,000 per kilogram. Just 24 hours prior, silver was available at ₹2,85,000, illustrating the extreme volatility currently gripping the commodities sector. This move reflects a broader global trend where investors are fleeing to tangible assets as a hedge against currency devaluation and global trade uncertainties.
City-Wise Breakdown of Rates
While the rally was nationwide, subtle variations in local taxes and transportation costs led to slightly different rates across major Indian hubs:
- Delhi, Jaipur, and Lucknow: 24-carat gold reached the peak national rate of ₹1,64,880.
- Mumbai, Kolkata, and Pune: Pure gold was quoted slightly lower at ₹1,64,730.
- Ahmedabad and Patna: The 10-gram rate for 24-carat gold settled at ₹1,64,780.
- Chennai: Historically a high-demand hub, prices here hovered near ₹1,65,820 due to local premiums.
Driving Forces: Why the Sudden Surge?
Analysts point to a convergence of international and local factors for this historic rally. Finance Minister Nirmala Sitharaman recently noted that central banks globally are aggressively stockpiling gold and silver, which is constricting the global supply. Furthermore, persistent uncertainty regarding U.S. trade tariffs and the weakening of the rupee against the dollar have made gold an attractive “safe haven” for Indian investors.
As February closes, the bullion market shows no signs of cooling. Consumers are advised to look for Bureau of Indian Standards (BIS) hallmarking and to stay informed about making charges, which can add a significant premium to the already record-high base rates.
