The historic bull run in the Indian bullion market hit a massive roadblock on today, when gold prices saw one of the steepest corrections in recent memory. The sudden reversal of gold's trajectory, dubbed “metal meltdown,” by market analysts has sent prices tumbling across all major Indian metros.
Strengthening US Dollar
As the greenback recovered strength, gold which is priced in dollars globally became more expensive for holders of other currencies, dampening international demand.
Technical Correction: A technical correction was in the works, HDFC Securities and Motilal Oswal analysts said.
Gold had entered "overbought" territory
A technical pullback was unavoidable to cool down the overheated market. The correction was felt throughout the country as 24K gold prices dropped by over ₹10,000 per 10 grams in some cities compared to the peaks witnessed on January 29th.
City-wise Gold Rates Today (January 31, 2026)
| City | 24K Gold (Per 10g) | 22K Gold (Per 10g) | 18K Gold (Per 10g) |
| Delhi | ₹1,69,340 | ₹1,55,240 | ₹1,27,040 |
| Mumbai | ₹1,69,190 | ₹1,55,090 | ₹1,26,890 |
| Chennai | ₹1,76,730 | ₹1,62,000 | ₹1,32,540 |
| Bengaluru | ₹1,69,190 | ₹1,55,090 | ₹1,26,890 |
| Hyderabad | ₹1,69,190 | ₹1,55,090 | ₹1,26,890 |
| Kolkata | ₹1,69,190 | ₹1,55,090 | ₹1,26,890 |
| Ahmedabad | ₹1,69,250 | ₹1,55,150 | ₹1,26,950 |
Silver Prices Face Even Steeper Crash
If gold’s tumble was an attempt to reverse a correction, silver’s move was actually the complete crash. Silver futures on the MCX plummeted by almost 17% in one session. In Delhi and Mumbai, silver is currently trading at around ₹3,94,900 a kg, down from the ₹4.20 lakh benchmarks touched earlier this week.
In fact, experts say, silver’s high volatility so-called “gold on steroids” rendered it all the more exposed to sudden jitters in investor sentiment.
What Should Investors Do?
Even with the crash, long-term sentiment is cautiously optimistic. That dip provides a good “entry point” for many fund managers who missed the early ascent, many note. But capping gold exposure from 10–15% is advised to keep in place a diversified portfolio. As the market gets ready for the upcoming Union Budget 2026, the spotlight will be on if the government decides to lift or lower import duties and in the weeks ahead this could hit domestic prices that may push up costs.
