Gold and silver prices in india have tumbled sharply in February 2026, with gold falling by nearly 16 % and silver plummeting about 38 % compared with earlier highs this month – yet the jewellery market hasn’t seen the buying boom that normally accompanies such price drops.

📉 How Much Have gold and silver Prices Fallen?

Precious metals have experienced significant corrections in recent weeks:

• Gold prices have declined around 16 % over the first half of february, slipping from recent peaks of over ₹1.70 lakh per 10 g to around ₹1.51 lakh/10 g.
• Silver prices have crashed nearly 38 %, falling from approximately ₹4.10 lakh/kg at the start of the month to roughly ₹2.55 lakh/kg.

This sharp correction was driven by weaker global demand, profit‑taking by investors, and a stronger US dollar, making dollar‑priced precious metals more expensive for non‑US buyers.

📊 Market Reaction: High Footfall But Limited Buying

Despite the sharp price drops, retail demand has remained muted:

• Jewellery showrooms are reporting increased footfall, as buyers come to check prices and explore options.
• However, most customers — even with the wedding season approaching — are choosing to delay purchases, hoping that prices will fall even further before committing.

Industry insiders note that while lower‑priced, lightweight pieces are selling modestly, high‑end and bulk purchases are not picking up as strongly as expected given the steep price cuts.

💍 Why Isn’t the Jewellery Market Booming?

Even with cheaper metals, several factors are keeping buyer sentiment cautious:

🕒 Expectation of Further Decline

Many prospective buyers are waiting on the sidelines, expecting prices to drop further before buying — particularly for investing or gifting purposes ahead of weddings.

🪙 Wedding Season Yet to Fully kick In

Although the wedding season could boost demand soon, many families are waiting to see if prices stabilize or dip further before making large purchases. Analysts believe demand may rebound only after price volatility subsides.

📉 Profit Booking & Global Cues

External market cues — such as a stronger US dollar and improving geopolitical sentiment — have reduced the attractiveness of gold and silver as safe‑haven assets, softening investor and consumer demand alike.

📈 Broader Market Signals

In addition to the physical jewellery market:

• The Multi Commodity Exchange of india (MCX) and the National Stock Exchange (NSE) have withdrawn additional margins on gold and silver futures contracts, lowering trading costs and potentially supporting more active participation in the commodities market.
• However, import trends show mixed signals — gold import volumes are down while silver imports have surged, reflecting changing demand dynamics in trade and industrial usage.

📅 What Analysts Are Watching Next

Market observers say the next few weeks will be crucial in determining whether prices find a bottom or continue their slide. Key factors to watch include:

💹 Global Economic Data

Data on inflation, central bank decisions, and currency strength — especially the US dollar — remain major drivers of precious metal prices.

🕊️ Geopolitical Developments

Tensions or resolutions in global hotspots can rapidly alter safe‑haven demand for gold and silver.

🪩 Wedding Season Demand

As peak wedding months approach, consumer sentiment could shift quickly if prices stabilize — triggering a delayed uptick in purchases.

🧠 How Buyers Are Responding

Many potential buyers are adapting their strategies:

• Some are buying lighter jewellery or coins rather than heavy investment pieces.
• Others are waiting for stable price signals before committing to big purchases.
• Speculative traders are watching futures and margin movements for entry opportunities.

🏁 Final Takeaway

Even though gold and silver prices have experienced massive declines, this hasn’t immediately translated into a big boost for the jewellery market. Buyers remain cautious — many are waiting for further dips, especially with the wedding season approaching, while broader global cues and market psychology continue to influence pricing and demand.

The coming weeks will be key in determining whether prices stabilize and consumer confidence returns, or volatility continues to keep buyers on the sidelines.

Disclaimer:

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