New Delhi, India | February 6, 2026
Precious metals witnessed a sharp sell-off for the second straight session, with silver and gold prices tumbling steeply in India amid signs of easing global tensions and aggressive profit booking at elevated levels.
In the domestic bullion market on Friday, silver prices in Delhi crashed by a massive ₹13,000 per kilogram, while gold slipped below its recent record highs. The fall came even as international markets experienced extreme volatility followed by a strong rebound later in the day.
Domestic Market: Silver Falls to ₹2.55 Lakh
According to data from the All India Sarafa Association, silver prices plunged 4.85%, falling from ₹2,68,000 per kg to ₹2,55,000 per kg (inclusive of all taxes).
Gold prices also weakened notably. Gold of 99.9% purity declined by ₹3,400, or 2.12%, to settle at ₹1,57,200 per 10 grams, compared to ₹1,60,600 in the previous session.
Market participants said the sharp correction was largely driven by profit booking after recent record-breaking rallies in both metals.
Global Markets See Wild Swings and Recovery
While Indian markets closed sharply lower, international bullion markets saw intense intraday volatility on Friday, followed by a strong recovery.
Silver: Spot silver rebounded sharply from an intraday low of $64.08 per ounce, rising 4.26% to trade near $74 per ounce. At one point, the metal had fallen nearly 10% during the session.
Gold: Spot gold slipped to a low of $4,654 per ounce early in the day before recovering 2.23% (about $106.74) to trade around $4,887.30 per ounce.
What’s Behind the Turbulence?
Analysts attribute the sharp price swings to a mix of geopolitical developments and macroeconomic uncertainty. Ongoing diplomatic signals involving the United States and Iran, including discussions reportedly taking place in Oman, have eased some safe-haven demand.
At the same time, uncertainty over the future monetary policy stance of the Federal Reserve continues to inject volatility into precious metals.
Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said weaker US jobs data has provided some support to bullion prices. However, expectations of progress in Iran-US talks have capped any sustained upside.
He added that ongoing developments in Oman and uncertainty around US monetary policy are keeping the bullion complex highly volatile.
Outlook
The current market action suggests a continued tug-of-war between geopolitical risks and economic data. While domestic investors appear focused on locking in profits, global bullion prices remain extremely sensitive to diplomatic headlines and macro signals, pointing to continued volatility in the near term.
