Steep decline in gold and silver prices, check today's rates; what are key reasons for decline, will this downward trend continue?
Amidst the ongoing conflict between the US, Israel, and Iran, gold and silver prices continue to witness a steady decline. According to the India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24-carat gold has dropped by Rs 12,077, settling at Rs 1.35 lakh. Previously, its price stood at Rs 1.47 lakh.
Gold witnessed a surge at the beginning of this year; however, in recent weeks, it has declined due to profit-booking and global factors. Gold price on December 31, 2025 was Rs 1.33 lakhs.
Gold price reached an all-time high on Jan 29
Registering a massive surge in just one month, gold price reached an all-time high of Rs 1.76 lakh on January 29, 2026.
Gold has now become cheaper by Rs 41,000 compared to its all-time high.
Silver cheaper by Rs 30,864
Meanwhile, the price of one kilogram of silver has fallen by Rs 30,864, coming down to Rs 2.01 lakh. Prior to this, on Friday, its price was Rs 2.32 lakh per kilogram. Driven by the US-Iran conflict, gold has become cheaper by Rs 23,956 and silver by Rs 65,200 over the last 24 days.
Key Reasons for the Decline
Typically, gold and silver prices tend to rise during times of war; however, the situation is slightly different this time around:
Due to the conflict in the Middle East, investors are reluctant to take on risk. They are selling off their gold and silver holdings to accumulate 'cash,' ensuring they possess liquid funds during these uncertain times.
Prices had reached record highs in January; consequently, large-scale investors began selling their holdings at these elevated rates, leading to an increased supply in the market and a subsequent drop in prices.
The Federal Reserve's adoption of a hawkish stance regarding interest rates in the US has also somewhat dimmed the luster of precious metals.
Downward trend is likely to persist
According to commodity experts, this downward trend in gold and silver prices is likely to persist. Given this outlook, investors are advised to refrain from investing in gold and silver at this juncture.