Direct impact of Iran war on gold and silver: Gold fell by ₹ 12 thousand, silver recorded a decline of ₹ 31 thousand; Know how much the price has fallen in a year
Gold and silver prices are continuing to fall amid the ongoing US-Israel war with Iran. According to India Bullion and Jewelers Association (IBJA), 10 grams of 24 carat gold has fallen by Rs 12,077 to Rs 1.35 lakh. Earlier its price was Rs 1.47 lakh. At the same time, the price of one kg silver has decreased by Rs 30,864 to Rs 2.01 lakh. Earlier on Friday its price was Rs 2.32 lakh per kg. Due to America-Iran war, gold has become cheaper by Rs 23,956 and silver by Rs 65,200 in 24 days.
Apart from Iran war Main reasons for decline
Leaving metal and relying on ‘cash’: Generally, the prices of gold and silver increase in times of war, but this time the situation is a little different:
Cash Saving: Investors are not willing to take risks due to the Middle East war. They are collecting ‘cash’ by selling their gold and silver so that they have liquid money in times of uncertainty.
Profit Booking: As prices reached record highs in January, large investors began selling their holdings at higher prices, increasing supply in the market and causing prices to fall.
Effect of interest rates: Precious metals have also lost their shine due to the US Federal Reserve taking a tough stance on interest rates. According to commodity expert Ajay Kedia, this decline in the prices of gold and silver may continue further. In such a situation, investors should avoid investing in gold and silver right now.
Gold price journey: ₹1.76 lakh to ₹1.35 lakh
Gold had seen a rise in the beginning of this year, but in the last few weeks it has declined due to profit-booking and global reasons.
- Starting Level (31 December 2025): ₹1.33 Lakh
- All Time High (29 January 2026): ₹1.76 lakh (huge jump in just one month)
- Current situation: Gold has become cheaper by ₹ 41 thousand from its highest level till now.
What factors affect the increase or decrease in prices?
Transportation and Security: Transporting gold from one city to another involves fuel and heavy security costs. As distance from import centers increases, transportation costs increase, which increases local prices.
Volume of purchase: Due to high consumption (about 40%) in areas like South India, jewelers buy gold in large quantities. Customers get the benefit of this discount in the form of lower prices.
Local Jewelery Associations: Every state and city has its own jewelery associations (e.g. Madras Jewelers Association in Tamil Nadu). These organizations decide the rate of gold for their area based on local demand and supply.
Old stock and purchase price: The rate at which the jeweler has purchased his stock also matters. Jewelers who have old stock purchased at cheaper rates can charge lower prices to customers.
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