Today gold and silver markets responded spectacularly in a time when profit-booking was rife following the 2026 Union Budget. Gold prices rose by more than 3% in early trade at home, also reflecting a vigorous recovery in global bullion prices from the major trade agreement between India and the United States.
On the Multi Commodity Exchange (MCX), gold April futures skyrocketed to around ₹1,48,000 per 10 grams, bouncing back massively from their previous dive yesterday. In the physical markets, the standard 24-carat gold now sells for about ₹1,53,160 per 10 grams on most of India’s metros.
What Is the "Trade Deal" Catalyst
The main impetus for today’s market volatility is the news from U.S. President Donald Trump, which announced that reciprocal tariffs on Indian products would be reduced from 25% to 18%. Even though with better trade stability comes lower demand for 'safe-haven' assets such as gold, the early market reaction is to be "technical correction."
Analysts say the massive sell-off in gold from January 30 to February 2, when the metal was down nearly 20 percent from its historic highs, left the metal oversold. The deal, along with a 1.2% rebound in the Indian Rupee (INR), has created a new floor for investors to return to the market.
City-Wise Gold Rates Today (Per 10 Grams) – February 3, 2026
| City | 24K Gold (Pure) | 22K Gold (Standard) | 18K Gold (999) |
| Delhi | ₹1,53,310 | ₹1,40,540 | ₹1,15,020 |
| Mumbai | ₹1,53,160 | ₹1,40,390 | ₹1,14,870 |
| Bengaluru | ₹1,53,160 | ₹1,40,390 | ₹1,14,870 |
| Chennai | ₹1,52,170 | ₹1,39,490 | ₹1,19,990 |
| Hyderabad | ₹1,53,160 | ₹1,40,390 | ₹1,14,870 |
Inflation The US Reserve Bank: The Fed has a hard nut to crack regarding Kevin Warsh, the next candidate serving as chair of the Reserve. His hawkish reputation (favoring higher interest rates) initially helped prop up the dollar and pressure gold, but today’s pullback looks like profit-taking has finally come to a head.
Rupee Rises: The INR strengthened to 90.40 versus the USD after the trade deal. A stronger Rupee usually makes gold, if imported, cheaper domestically, acting as a hedge against the soaring international price.
Physical Demand: Jewelers in cities like Bengaluru and Chennai saw slight improvements in footfall as customers waiting for post-budget downtrend moved to fix prices before they have a re-accelerant.
Experts Outlook
“We are witnessing a classic technical bounce-back,” says a senior commodity scholar. “The main drivers including geopolitics and central bank buying are still there.” Though the India-US deal lessens certain uncertainty, gold is now finding support in between ₹1,43,000–₹1,45,000 zone on the MCX. A sustained move over ₹1,50,000 may just prove the beginning of a new bull run.
