Gold Rate in India Crashes Rs 25,680 In 5 Days: Will Prices Rise On Feb 4 After India-US Deal? Check Outlook

Gold Rate in India: Gold and silver prices in India witnessed a sharp upswing in January, with rates nearly doubling within weeks amid escalating geopolitical tensions, global trade concerns, and weakening currency trends. After some recovery on Tuesday following a two-day crash, market participants are now closely tracking gold and silver price movements on Wednesday, February 4.

Meanwhile, the recently concluded India-US trade deal has triggered a significant surge in Indian stock market. The reciprocal tariff deal between the two nations could help in narrowing India's current account deficit, and strengthening the domestic currency, and may potentially impact domestic gold and silver prices.

Gold Rate in India

The price of 24 karat gold in India jumped significantly over the past one month, since January. 24 karat gold rate in India on Tuesday, February 4, stood at Rs 15,393 per gram. Whereas, the price of 22 karat gold in India stood at Rs 14,111 per gram. The rate of 18 karat gold in India stood at Rs 11,546 per gram. The price of 24 karat gold in India jumped to its all-time high of Rs 17,885 per gram on January 29, as per the GoodReturns data. Hence, the prices have declined nearly Rs 2,492 per gram and Rs 24,920 per 10 gram in just six days.

Silver Rate in India

The price of silver in India stood at Rs 278 per gram and to Rs 2,78,000 per kilogram. Silver rate in India has witnessed a massive volatility over the past one week. The prices of the precious metal jumped beyond Rs 4 lakh per kilogram in January. In just one week, silver rate in India has declined below Rs 3 lakh per kilogram mark.

Gold, Silver Price Outlook

Gold and silver are likely to see heightened volatility on Wednesday, February 4, and may see some further recovery after the last two days' correction. In the long-term, gold and silver prices may surge due to strong demand, central banks buying, and supply side deficit.

Gold and silver may see some recovery on Wednesday followed by significant price correction. However, a major upwing in their prices is unexpected, according to experts.

"With the announcement that tariffs on Indian goods from 50% to around 18% provides a boost for India's export-oriented sectors and for global trade sentiment. Such a big reduction lowers cost pressures for Indian exporters in areas such as textiles, engineering goods, chemicals, and some manufacturing segments. This will improve their ability to compete in the US market," explained Ross Maxwell, Global Strategy Operations Lead, VT Markets.

"In relation to this announcement, gold and silver prices will be looking to balance between lower trade tensions and persistent macro uncertainty. A clearer trade outlook can reduce risk aversion, which will limit upside moves in precious metals," Maxwell added.

"Global gold demand crossed 5,000 tonnes last year, the highest on record, with investment demand rising sharply even as jewellery consumption moderated. Leading global institutions like JP Morgan have indicated potential for gold to move towards the USD 6,000-6,300 per ounce range over the medium term, driven by central-bank diversification, currency volatility and risk-off sentiment. While near-term swings are inevitable, gold remains a strategic portfolio diversifier and long-term store of value," explained Naren Agarwal, CEO, Wealth1.

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