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Gold Prices Plunge in India, Breach INR 15 Lakh Mark

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  Published in Business and Finance on Saturday, January 31st 2026 at 9:45 GMT by Zee Business
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Mumbai, India - January 31, 2026 - Gold prices in the Indian market have breached the INR15 lakh per 10 grams mark today, while silver has experienced a particularly steep fall, sparking concern among investors and analysts. Market veteran Anil Singhvi warns that this isn't a temporary dip, but potentially the beginning of a sustained correction in precious metals, advising caution and diligent market monitoring.

The Dip Detailed: Gold and Silver Under Pressure

As of Saturday, January 31st, 2026, gold is trading significantly below INR15 lakh per 10 grams, a level unseen for several months. This represents a substantial retraction from the highs seen throughout 2025, fuelled by a confluence of global and domestic pressures. Silver, known for its volatility, has taken a more dramatic hit, experiencing a sharper percentage decrease than gold. Precise figures vary slightly between bullion traders, but all indicators point to a significant downturn. The decline is impacting both retail and institutional investors, leading to a re-evaluation of portfolios.

Singhvi's Analysis: Beyond a Simple Correction

Anil Singhvi, a respected voice in the Indian financial markets, believes the current movement isn't merely a correction after a period of strong gains. He attributes the decline to a shift in the fundamental factors supporting precious metal prices. Speaking to financial news outlets earlier today, Singhvi stated, "We've seen a sustained period of high inflation and geopolitical uncertainty driving demand for safe-haven assets like gold and silver. However, indications are emerging that these pressures are easing, and investors are beginning to re-allocate capital."

He highlighted that strong economic data from the US, hinting at a more resilient economy than previously anticipated, is contributing to a reduced need for the safe haven of gold. Further, easing geopolitical tensions - specifically citing progress in de-escalating conflicts in Eastern Europe and the Middle East - are diminishing risk aversion and lessening the appeal of precious metals.

Decoding the Factors at Play

The decline in gold and silver prices is a complex interplay of several factors. Here's a breakdown:

• Global Economic Conditions: The strengthening US dollar, coupled with relatively positive economic indicators, is making dollar-denominated assets more attractive to investors. This, in turn, reduces demand for gold, which is often seen as a hedge against dollar weakness.
• Interest Rate Expectations: Market speculation about potential interest rate hikes by the US Federal Reserve further strengthens the dollar and increases the opportunity cost of holding non-yielding assets like gold.
• Investor Sentiment: A shift in investor sentiment from risk-off to risk-on is leading to capital flowing into equities and other growth assets, reducing demand for safe havens.
• Geopolitical Landscape: Although geopolitical risks remain, a perceived reduction in immediate threats has lessened the demand for gold as a protective asset.
• Supply Dynamics: Increased gold and silver production from major mining nations is also contributing to the downward pressure on prices, although this factor is considered less significant than the macroeconomic forces at play.
• Indian Demand: Traditionally, India is a massive consumer of Gold. A slowdown in rural demand (often correlated to monsoon performance and agricultural income) and a relatively stable Indian Rupee are both exerting downward pressure.

What's Next? Market Outlook and Expert Predictions

Analysts are now focusing on key support levels for gold and silver to gauge the extent of the potential decline. Many are anticipating a further correction in the short term, with gold potentially testing levels below INR14.5 lakh per 10 grams. Silver, due to its higher volatility, could experience even steeper falls.

Singhvi advises investors to avoid panic selling but also to be cautious about adding to their positions. "This isn't the time for aggressive buying. Investors should closely monitor macroeconomic data releases, particularly inflation figures, interest rate decisions, and geopolitical developments," he cautioned.

Several analysts suggest that a sustained recovery in gold and silver prices will likely require a significant reversal in the factors currently driving the correction - either a weakening of the US dollar, a resurgence of inflation, or a significant escalation of geopolitical tensions. For now, the outlook for precious metals remains cautiously bearish, and investors are bracing for a potentially prolonged period of price correction.