Gold prices recorded a significant fall on February 2, 2026, marking a sharp reversal after weeks of strong gains that had pushed the yellow metal to record highs. The sudden correction affected domestic futures, spot markets, and retail jewellery prices across major Indian cities.
In India, gold prices remained relatively steady on Monday after a steep decline over the previous sessions. The price of 24 carat gold stood at approximately Rs 1,51,530 per 10 grams in cities such as Mumbai, Bengaluru, Hyderabad, and Kolkata. In Delhi, prices were marginally higher at around Rs 1,51,680 per 10 grams. Meanwhile, 22 carat gold was priced near Rs 1,38,900 per 10 grams in most metros, while 18 carat gold traded around Rs 1,13,650 per 10 grams.
Southern markets such as Chennai reported slightly higher rates, with 24 carat gold trading close to Rs 1,52,180 per 10 grams and 22 carat gold around Rs 1,39,500 per 10 grams. Prices across other cities including Pune, Ahmedabad, Jaipur, Lucknow, and Chandigarh largely followed the national trend, reflecting uniform market sentiment.
According to bullion trade data, gold prices dropped by more than Rs 9,000 per 10 grams from their recent peak levels. The decline was observed across multiple platforms, including the Multi Commodity Exchange and the spot market. Analysts attributed the fall primarily to aggressive profit booking after the metal entered overbought territory.
Global factors also played a major role in the correction. On the Comex exchange, gold prices fell sharply by over 11 percent, sliding to around 4,745 dollars per ounce. Spot gold also weakened significantly as investors moved away from safe haven assets amid a recovery in the US dollar and easing geopolitical concerns.
Market experts explained that the sharp rally in gold over the past few months had already priced in multiple global risks. As a result, any improvement in macroeconomic signals or strengthening of the dollar triggered selling pressure. Large institutional investors were seen unwinding long positions, adding to the downward momentum.
The correction coincided with Budget Day trading in India, which often sees heightened volatility in commodity markets. Uncertainty around fiscal announcements and interest rate expectations further contributed to cautious investor behaviour.
Industry analysts noted that while the short term outlook remains volatile, long term fundamentals for gold remain intact. Factors such as global economic uncertainty, central bank buying, and inflation concerns continue to support gold prices over extended periods.
Jewellery buyers and retail investors are closely watching price movements, with some viewing the decline as an opportunity to accumulate gold at lower levels. However, experts advise caution, suggesting that prices may remain range bound in the near term as global cues evolve.
Overall, the sharp fall in gold prices on February 2 highlights the metal’s sensitivity to global economic signals and investor sentiment, reminding market participants that even traditional safe haven assets are not immune to sudden corrections.
