Gold prices opened 6% lower on February 1 at Rs 1,43,205, slipping ahead of Union Budget 2026

Gold opened lower on February 1 at Rs 1,43,205 per 10 grams on the MCX, slipping 6 percent from its previous close of Rs 1,52,345, as a stronger dollar and ongoing geopolitical tensions weighed on prices ahead of the Budget 2026 session.

On Comex, the spot price of gold stood just above $4,879 per ounce, representing 8.25 percent decline from its previous close.

Gold’s sharp fall in prices has curbed its physical demand, with central bank buying easing and India’s gold imports likely to fall as record prices hit jewellery demand. Still, persistent economic and geopolitical uncertainty continues to support prices despite a stronger dollar and steady US interest rates.

Gold prices vary by purity. Check the prices of gold based on its purity:

City-wise gold prices in India today

Gold rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Gold price outlook

The price of gold has sharply corrected after the US Fed kept the rates unchanged at 3.5-3.75 percent during the January policy meeting. US President Donald Trump has nominated Kevin Warsh as the next chair of the US Federal Reserve, set to take over when Jerome Powell’s four-year term ends in May.

Traders are now pricing in a further accommodative stance, which has supported their prices. The geopolitical tensions added fuel as US-Iran relations intensified over a nuclear program. The prices are also up amid the ongoing war between Ukraine and Russia, the crisis in Gaza, Trump’s tariff threats, and the dollar’s strength.

The Augmont Bullion report, published on January 29, said that gold’s strong support is at $5,200 (Rs 1,60,000), a break could trigger profit-booking toward $5,000–$4,750.

Gold prices typically fall when the dollar strengthens. When the dollar gains value, it becomes more expensive for individuals and institutions using other currencies to purchase the same amount of gold, which tends to reduce demand and thus the price.