Amid the ongoing conflict between America, Israel and Iran, gold and silver prices are continuously falling. According to the India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24-carat gold fell by ₹5,346 to ₹1.46 lakh on Thursday. Earlier, on Wednesday it was ₹1.51 lakh. Meanwhile, the price of one kilogram of silver fell by ₹15,176 to ₹2.25 lakh—from ₹2.40 lakh on March 25. Due to the US-Iran conflict, gold has become cheaper by ₹13,590, while silver has fallen by ₹42,040 in the last 34 days.
4 reasons due to which gold prices vary in different cities
**Transportation and Security:** Transporting gold from one city to another involves fuel and security costs; As a result, as the distance increases, the prices also start increasing.
**Purchasing Volume:** Due to high consumption in South India (about 40%), jewelers purchase in bulk; However, the benefits of bulk discounting remain limited.
**Local Jewelers Associations:** State and city-level jewelers associations set rates based on local demand and supply.
**Old Stock and Purchase Price:** The rate at which jewelers originally purchased their stock is the rate at which they later sell it to customers.
Gold falls by ₹31,000 from its all-time high
Gold prices had witnessed an upward trend at the beginning of the year; However, prices have declined in recent weeks due to profit-taking and the Iran-related conflict.
**Starting Level (December 31, 2025):** ₹1.33 Lakh
**All-time high (January 29, 2026):** ₹1.76 lakh
**Current Situation:** Gold has now fallen below ₹31,000 from its all-time high.
**Heavy fall in silver:** Fall from ₹3.86 lakh to ₹2.25 lakh
Silver has seen more volatility than gold and has fallen sharply from its all-time high. Starting Level (December 31, 2025): ₹2.30 lakh
All-time high (January 29, 2026): ₹3.86 lakh
Fall Statistics: In the last 63 days, the price of silver has fallen by ₹1.61 lakh.
Main reasons for decline: Increasing dependence on cash
Typically, gold and silver prices rise in times of war; However, this time the situation is different:
Conserving cash: Amid the ongoing conflict in the Middle East, investors are trying to reduce risk by selling their gold and silver reserves and accumulating cash, so that they can maintain their liquidity during this period of uncertainty.
Profit Booking: In January, large investors sold their inventories at record high prices, causing supply to increase and prices subsequently falling.
Impact of interest rates: The tight stance adopted by the US Federal Reserve has taken the shine off the precious metals.
According to commodity expert Ajay Kedia, this trend of falling prices of gold and silver may continue in the near future also. Therefore, investors are advised to avoid investing in gold and silver at this time.
Keep these 2 things in mind while buying gold from jewelers
1. Buy only certified gold: Always buy certified gold which is hallmarked by the Bureau of Indian Standards (BIS). This hallmark number is alphanumeric (a combination of letters and numbers)—appearing in a format such as AZ4524. Hallmarking is an indicator of the purity (karat value) of gold.
2. Double-check the price: Confirm the correct weight of the gold and its current market price on the day of purchase by double-checking with multiple sources (such as the India Bullion and Jewelers Association website). Gold prices vary depending on karat purity—particularly for 24-karat, 22-karat, and 18-karat gold.
4 ways to identify real silver
Magnet Test: Real silver does not stick to a magnet. If it sticks to the magnet, it is fake.
Ice test: Place a piece of ice on a silver surface. Ice melts very quickly when placed on real silver. Smell Test: Genuine silver has no smell; It doesn’t smell any good. Fake silver often smells like copper.
Cloth Test: Rub the silver on a white cloth. If a black mark is formed on it, then it is genuine.
The total value of gold held by Indian households has crossed $5 trillion (₹450 lakh crore). This figure is more than the country’s total GDP of $4.1 trillion—i.e. ₹370 lakh crore. The reason for this increase is that gold prices have reached record highs. According to a report by Morgan Stanley, Indian households together own about 34,600 tonnes of gold. At present, the price of gold is hovering around ₹1.38 lakh per 10 grams. At the same time, in the international market, gold is being sold for above $4,500 per ounce (about 28 grams). When it is converted into rupees, its price comes to approximately ₹ 1.30 lakh per 10 grams.