New Delhi/Mumbai:
If you held off on buying gold yesterday, your patience just paid off. In a dramatic turn of events, the bullion market witnessed a “Brutal Sell-off” this morning. After touching a lifetime high of ₹1.80 Lakh earlier this week, Gold (24K) has crashed by nearly ₹11,000 to trade at approx ₹1.69 Lakh per 10 grams.
Silver has also broken key support levels, slipping below the psychological ₹4 Lakh/kg mark to trade near ₹3.95 Lakh.
Why Did Prices Crash?
The sudden drop isn’t just a random fluctuation; it is a “Perfect Storm” of three major triggers:
- The ‘Warsh’ Effect: Late Friday (Jan 30), President Trump nominated Kevin Warsh to replace Jerome Powell as the next Federal Reserve Chair. Warsh is a known “hawk” who favors higher interest rates to fight inflation. His nomination instantly strengthened the US Dollar, causing investors to dump safe-haven assets like gold.
- Budget Jitters: With Finance Minister Nirmala Sitharaman set to present Union Budget 2026 tomorrow (Feb 1), traders are aggressively booking profits. There is market speculation about a potential customs duty cut, which would lower domestic prices further.
- Profit Booking: After a non-stop rally in January 2026 (where gold rose nearly 20%), a technical correction was overdue.
City-Wise Gold Rates (Jan 31, 2026)
Note: Prices quoted are for 10 grams 24K/22K and exclude GST/Making Charges.
| City | 22K Gold (Standard) | 24K Gold (Pure) | Trend |
| New Delhi | ₹1,55,240 | ₹1,69,340 | 🔻 CRASH |
| Mumbai | ₹1,55,100 | ₹1,69,200 | 🔻 CRASH |
| Chennai | ₹1,62,000 | ₹1,76,730 | 🔻 DIP |
| Kolkata | ₹1,55,100 | ₹1,69,200 | 🔻 CRASH |
| Bengaluru | ₹1,55,100 | ₹1,69,200 | 🔻 CRASH |
| Hyderabad | ₹1,55,100 | ₹1,69,200 | 🔻 CRASH |
| Ahmedabad | ₹1,55,150 | ₹1,69,250 | 🔻 CRASH |
Why This Matters To You
- For Buyers: This is a major “Dip Buying” opportunity. A drop of ₹11,000 per 10g is rare. If you have a wedding in February, booking 50% of your gold today saves you approx ₹55,000 compared to Thursday’s rates.
- For Investors: The crash in silver (down to ₹3.95 Lakh/kg) makes it attractive for long-term entry, but volatility will remain high until the Budget speech concludes tomorrow.
- Caution: Prices could swing wildly on Monday based on the Finance Minister’s announcements.
Key Highlights Box
- 📉 Crash: Gold down ~₹11,000/10g.
- 🥈 Silver: Slips to ₹3.95 Lakh/kg.
- 🇺🇸 Trigger: Trump nominates Kevin Warsh for Fed.
- ⚠️ Event: Budget 2026 (Tomorrow, Feb 1).
- 👉 Action: Buy small quantities today; wait for Budget for bulk.
Frequently Asked Questions (FAQs)
A: It depends on the Import Duty. If the Finance Minister announces a cut to curb smuggling, prices could fall by another ₹2,000–₹5,000. If duties remain unchanged, the global “Warsh Rally” (Strong Dollar) will dictate the trend.
A: Chennai traditionally maintains a premium due to high local demand and specific trade association fixings. However, even Chennai has seen a significant dip from yesterday’s peak.
A: Kevin Warsh is President Trump’s pick for the new Fed Chair. He historically supports stronger money and higher rates, which is usually negative for gold prices in the short term.
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Disclaimer: Gold investment is subject to market risks. Prices mentioned are indicative morning rates as of Jan 31, 2026.
