The golden rally of early 2026 has hit a significant roadblock. On Friday, February 13, 2026, gold prices across India extended their downtrend, leaving investors and jewelry buyers in a flurry. After peaking at an all-time high of nearly ₹18,300 per 10 grams in late January, the market has undergone a historic correction following the Union Budget.
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Today’s decline of roughly 1.5% reflects a broader global sentiment where a strengthening US dollar and dimming hopes for immediate interest rate cuts have cooled the demand for safe-haven assets.
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Gold Price Breakdown: 24K, 22K, and 18K Today
Retail prices dropped significantly today as profit-booking intensified. Below is the per-gram breakdown:
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24 Karat Gold: The “pure gold” used for investment is now ₹15,578, down from yesterday’s ₹15,840.
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22 Karat Gold: The jewelry-standard gold is trading at ₹14,280, marking a drop of ₹240.
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18 Karat Gold: Often used for diamond-studded ornaments, this variant is available at ₹11,684.
City-Wise Comparison: Chennai, Mumbai, and Delhi
While the national trend is bearish, local taxes and transportation costs create slight variations across major hubs.
| City | 24K Rate (Per Gram) | 22K Rate (Per Gram) |
| Chennai | ₹15,709 | ₹14,400 |
| Mumbai | ₹15,578 | ₹14,280 |
| Delhi | ₹15,593 | ₹14,295 |
| Bangalore | ₹15,578 | ₹14,280 |
| Ahmedabad | ₹15,583 | ₹14,285 |
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The Budget 2026 Factor: Why Gold is Crashing
The primary catalyst for this month’s 12% price drop was the Union Budget presented on February 1.
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Fiscal Discipline: The government’s focus on controlled spending and a lower fiscal deficit has strengthened the Indian Rupee. A stronger Rupee lowers the landed cost of imported gold.
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Profit Booking: After a staggering 20% rise in January alone, institutional investors are “heavy-selling” to lock in gains, leading to a liquidity-driven sell-off.
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Global Cues: Strong US jobs data released this week suggests the Federal Reserve will keep interest rates higher for longer, making non-yielding assets like gold less attractive compared to US Treasuries.
Sovereign Gold Bonds: The New Tax Reality
The Budget also brought a structural shift for digital gold investors. The Sovereign Gold Bond (SGB) scheme, once the crown jewel of tax-efficient investing, has seen its advantages narrowed.
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The Maturity Trap: Capital gains are now only tax-free if you hold bonds bought directly from the RBI till maturity.
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Secondary Market: Bonds purchased via stock exchanges (secondary market) are now subject to capital gains tax, removing the tax arbitrage they once held over Gold ETFs.
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Investment Shift: For the first time, January 2026 saw Indian investors pump more money into Gold ETFs than equity mutual funds, seeking liquidity over the long lock-in periods of SGBs.
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[GOLD INVESTMENT OPTIONS: POST-BUDGET 2026]
| Feature | Physical Gold | Gold ETFs | Sovereign Gold Bonds |
| Tax Status | Taxable | Taxable (12.5% LTCG) | Tax-Free (Primary Only) |
| Liquidity | High (Instant) | Very High | Low (5–8 Year Lock-in) |
| Additional Income | None | None | 2.5% Annual Interest |
| Storage Cost | High (Bank Locker) | Zero | Zero |
Next Steps
If you are a jewelry buyer, you should take advantage of the current “buy on dips” window, as the wedding season demand is expected to provide a floor for prices near the ₹15,000 mark. Furthermore, if you are a long-term investor, you should evaluate shifting from secondary-market SGBs to Gold ETFs, given the recent tax alignment and the higher liquidity ETFs offer during volatile periods.
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