CHENNAI: Gold prices crashed for a third day in a row in Chennai on Monday (February 2), with the yellow metal dropping by Rs 7,600 per sovereign. Gold was priced at Rs 1,11,600 per sovereign (8 grams) and Rs 13,950 per gram, marking a fall of Rs 950 per gram.
On January 31, 22-carat gold had been priced at Rs 1,19,200 per sovereign and Rs 14,900 per gram.
Why are gold and silver prices on the rise?
Analysts said the sell-off in gold and silver began last week with the US dollar strengthening following Kevin Warsh’s nomination as the incoming Federal Reserve chair because he is viewed as more aggressive on interest rates. The free fall in prices intensified on Monday after the announcement of a hike in margin requirements on the Chicago Mercantile Exchange (CME). Meanwhile, domestic prices were affected after import duty on bullion remained unchanged in the Union Budget.
Gold remains significantly higher compared to last year. Prices have surged from Rs 61,960 per sovereign (Rs 7,745 per gram) on February 1, 2025, to Rs 1,11,600 per sovereign (Rs 13,950 per gram) on February 2, 2026, marking an increase of Rs 49,640 or about 80.46%.
Silver, which was rising faster than gold lately, also witnessed a sharp fall on Monday, dropping by Rs 20 to Rs 300 per gram (Rs 3,00,000 per kg) on February 2. A gram of silver had cost Rs 350 on January 31.
Silver prices have climbed far faster than gold on a year-on-year basis. While gold prices rose by about 80.46% over the past year, silver recorded a much sharper increase. Silver rose from Rs 107 per gram on February 1, 2025, to Rs 300 per gram on February 2, 2026, an increase of Rs 193 per gram, or roughly 180%.
January 31, 2026: 1 Sovereign- Rs 1,19,200 | 1 gram- Rs 14,900
January 30, 2026: 1 Sovereign- Rs 1,26,800 | 1 gram- Rs 15,850
January 29, 2026: 1 Sovereign- Rs 1,34,400 | 1 gram- Rs 16,800
January 28, 2026: 1 Sovereign- Rs 1,24,880 | 1 gram- Rs 15,610
January 27, 2026: 1 Sovereign- Rs 1,19,680 | 1 gram- Rs 14,960
January 31, 2026: 1 gram- Rs 350
January 30, 2026: 1 gram- Rs 405
January 29, 2026: 1 gram- Rs 425
January 28, 2026: 1 gram- Rs 400
January 27, 2026: 1 gram- Rs 387