Gold prices fell by ₹3,152 per 10 grams while silver recorded a sharp ₹9,209 per kg decline as precious metals came under pressure amid uncertainty surrounding the US-Iran peace deal and broader market volatility.

Precious metals witnessed a steep correction on Thursday, with silver posting one of its sharpest single-day declines in recent months and gold prices also retreating significantly. Market participants attributed the fall to shifting investor sentiment amid uncertainty over developments related to the US-Iran peace agreement and weakness across global financial markets.

According to data released by the India Bullion and Jewellers Association (IBJA), silver prices dropped by ₹9,209 per kilogram to ₹2.31 lakh. The metal had closed at ₹2.40 lakh per kg a day earlier.

Gold prices also registered a notable decline. The rate of 24-carat gold fell by ₹3,152 per 10 grams to ₹1.45 lakh from the previous day's level of ₹1.48 lakh.

Sharp correction recorded

The fall comes after months of extreme volatility in precious metals, which had surged to record highs earlier this year amid geopolitical tensions, inflation concerns and uncertainty in global financial markets.

Analysts said that as investors assessed evolving developments in West Asia and signs of easing geopolitical risks, some safe-haven demand weakened, triggering profit booking in both gold and silver.

Broader weakness in global markets also contributed to the decline, with investors adjusting positions across multiple asset classes.

Gold slips from peak

Despite the latest correction, gold remains substantially higher compared to levels seen at the end of last year.

IBJA data shows that gold was priced at around ₹1.33 lakh per 10 grams on December 31, 2025. Prices continued climbing through January and touched an all-time high of ₹1.76 lakh per 10 grams on January 29.

Since that record level, however, gold has corrected by nearly ₹32,000 per 10 grams.

Market experts note that such sharp moves are not uncommon after periods of rapid price appreciation, particularly when global investors begin shifting funds toward riskier assets.

Silver remains volatile

Silver has experienced even greater fluctuations during the same period.

The metal was trading at ₹2.30 lakh per kilogram at the end of 2025 before rallying sharply to a historic high of ₹3.86 lakh per kg on January 29. Since then, prices have fallen by approximately ₹1.56 lakh per kilogram.

The latest decline underscores the heightened volatility often associated with silver, which is influenced by both investment demand and industrial consumption trends.

What buyers should check

Industry bodies continue to advise consumers to exercise caution while purchasing gold jewellery and bullion products.

Buyers should ensure that gold carries a valid Bureau of Indian Standards (BIS) hallmark, which certifies purity standards. Hallmark identification numbers help verify the authenticity and carat value of the metal.

Consumers are also advised to compare prevailing market rates before making purchases, as gold prices vary depending on purity levels such as 24-carat, 22-carat and 18-carat categories.

Identifying genuine silver

Jewellers and market experts suggest a few basic checks that can help consumers identify genuine silver products.

Real silver generally does not stick to magnets. It also conducts heat efficiently, causing ice placed on its surface to melt more quickly. Authentic silver typically has no noticeable smell, while imitation products may emit a copper-like odour. Rubbing silver with a white cloth may leave a dark mark due to natural oxidation, which can be another indicator of authenticity.

Markets watch global cues

Traders will continue monitoring geopolitical developments, commodity trends and global investor sentiment in the coming days. Any clarity regarding international negotiations and broader economic conditions could influence the direction of gold and silver prices.

For now, the sharp decline in gold and silver prices highlights how quickly sentiment can shift in commodity markets after periods of record-breaking gains.