02/02/2026
As per today's status (February 2, 2026), 22 carat jewelry gold price is sold at Rs. 13,950/- per gram.
That means the price of one sovereign gold is Rs. 1,11,600/-. The price of sovereign went up to Rs. 1,34,000 last week and reached the historical peak. That's where this sudden fall has happened.
On January 30th, it reduced by Rs. 7,600 for Savaran and stood at Rs. 1,19,200. Still Rs today. 7,600 reduced by Rs. Coming up at 1,11,600
Let's deeper into the reason why this sudden collapse.
US President Donald Trump will propose Kevin Warsh as the next president of the Federal Reserve Bank is the main thing in the current market.
Jerome Powell's tenure, who is the current Federal Reserve President, ends in May 2026. This Kevin Warsh is very correct in economic policies. Market prediction is that he will not reduce interest rate, control the dollar flow.
The basic economic rule is that if the value of a country's currency increases, the price of gold purchased from that currency will decrease. Investors have leaned to the dollar saying Kevin Warsh is coming. This is why the dollar index has risen. The fascination for gold decreased as the dollar got stronger.
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Second reason for profit booking.
When the price of sovereign was 60,000, the buyers decided that it touched 1,34,000 and started selling it in bunch of bullets, "will not climb more than this, let us sow and see the money" If the seller is more than the buyer in the market, then the price will be reduced? That's what happened.
Ok if we can buy it now, don't rush it's the experts opinion
Even though the price is now at Rs. 1,11,600/-, it is not a standard ground level. Dead Cat Bounce in market language. That means the object that fell fast, silk on the ground will rise up and fall again. Like that prices are still likely to drop.
If asked how much more will it reduce, they are estimated that the price of sovereign can go up to Rs. 1,07,000/- or even Rs. 1,02,000. The swing will be at the market throughout February.
If you want to invest, don't deposit total money now. If you have one lakh rupees for example, buy it for only 20,000 rupees today. Have fun with the remaining money. Buy the next installment if prices still drop. Maybe even if the price goes up, is it profitable to buy at a cheap price? This is called averaging.
So patience is the key in the present situation. Jewelry shopkeepers will advertise "Buy today when prices go up". Don't be tensed by believing it all.
Gold prices will be on the rise until the dollar is over in the international market. Slow decisions are good for your purse and your mind.
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