Editor’s Note
This article describes a historic plunge in gold and silver prices in India on the eve of the Union Budget 2026, capturing the market’s heightened anticipation.
The Indian bullion market on Saturday, January 31, 2026, has broken decades-old records. Amid a ‘panic’ situation in global markets over gold and silver prices, gold prices have plunged by 18 thousand while silver prices have fallen by 44 thousand. Meanwhile, jewelers and the general public in Rajasthan are keeping a close watch on the upcoming Union Budget 2026, scheduled for February 1.
Saturday morning, January 31, 2026, was nothing short of a shock for Indian investors. Globally, news of Kevin Warsh being appointed as the new Chairman of the Federal Reserve in the USA has shaken the commodity markets. Warsh is considered a strict policy supporter, which led to a sudden surge in the dollar index and triggered a ‘free-fall’ or major decline in gold and silver prices worldwide, the impact of which was also felt in India on the Multi Commodity Exchange (MCX). Here, a decline of 10% to 15% in prices was witnessed in a single day.
Rajasthan, known for its traditional jewelry and high gold consumption, is currently in a ‘wait and watch’ mode. The figures that emerged from Jaipur’s bullion market until 11:23 AM on January 31 are historic.
In Jaipur on Saturday, January 31, the price of 24-carat pure gold fell to ₹1,62,453 per 10 grams, a record drop of ₹18,583 compared to Friday, January 30. Similarly, 22-carat (jewelry gold) also fell to ₹1,48,915. This decline during the wedding season has provided relief to families who had been postponing purchases for several months due to rising prices.
Silver has shattered all records of decline. Retail silver in Jaipur was recorded at ₹3,29,152 per kilogram, a massive drop of ₹44,688 in a single day.
City | 22K Gold (₹/10gm) | 24K Gold (₹/10gm) | Silver (₹/kg)
— | — | — | —
Jaipur | ₹1,48,915 | ₹1,62,453 | ₹3.29 lakh
Jodhpur | ₹1,48,700 | ₹1,62,100 | ₹3.27 lakh
Udaipur | ₹1,48,800 | ₹1,62,250 | ₹3.28 lakh
Kota | ₹1,48,650 | ₹1,62,050 | ₹3.26 lakh
Source: ‘All India Bullion’ Official Website
According to Manish Khunteta, a member of the Jaipur Jewelers Association, a major reason for this volatility in silver prices is China. China recently imposed strict restrictions on silver exports to protect its domestic solar panel and electric vehicle (EV) industry. Furthermore, silver is not directly mined; it is a ‘by-product’ of other metals. Similarly, silver consumption in solar energy, AI products, and EV batteries is growing at an annual rate of 20%, while production remains stable.
Finance Minister Nirmala Sitharaman will present her 9th budget on February 1. The jewelry industry in Rajasthan has placed some key demands before the government, including:
– **Reduction in Custom Duty:** The industry wants the import duty on gold to be reduced to 3% to boost domestic sales.
– **GST Relief:** The Jewelers Association demands that the GST rate on jewelry be reduced from 3% to 1.25%.
– **Tax Relief:** If the government provides tax relief, it will be easier for the middle class to buy gold and provide employment to millions of artisans associated with this sector.
Experts believe that in the long term, gold and silver are still ‘safe investments’. According to experts:
