Gold Today Rate, February 18: Prices Stagnate After Post-Budget Fiasco

Gold prices in India remained stagnant Wednesday across all purity levels following a volatile start to the week. The yellow metal is currently trading at ₹15,420 per gram for 24-karat gold, reflecting a period of consolidation after a brutal post-budget sell-off.

Add businessleague.in as a Preferred Source

The market is still reeling from the 12% drop triggered by Union Finance Minister Nirmala Sitharaman’s February 1 budget presentation. This correction follows a record-breaking January where prices surged by nearly 20%. While the downtrend paused Tuesday, the lack of fresh buying momentum suggests investors remain cautious.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

The Post-Budget Price Correction

The primary driver for the recent crash was the anticipation and subsequent announcement of a cut in bullion import duties. Speculation centered on a reduction from 6% to 4%, which immediately dragged domestic prices lower to align with international benchmarks.

Meanwhile, global factors played a role in the “Warsh Shock”—the nomination of Kevin Warsh as the next Federal Reserve Chair. This move strengthened the US dollar, causing spot gold to slip below the 5,000 per ounce mark. In fact, international spot gold dropped to roughly $4,933 per ounce Wednesday morning.

Regional Price Variations: Chennai vs. The Rest

While prices were stagnant nationwide, regional taxes and local demand created slight variations. Chennai continues to record the highest rates, with 24K gold priced at ₹15,524 per gram. In contrast, major cities like Mumbai, Kolkata, and Bangalore are hovering at the base rate of ₹15,420.

Next, Delhi’s 24K rate stood slightly higher at ₹15,435. These discrepancies are often attributed to varying transportation costs and local jeweller association margins. Therefore, buyers in southern India are facing a premium of nearly ₹100 per gram compared to their counterparts in western and northern hubs.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

The Rise of Paper Gold: ETFs vs. Equities

A historic shift in Indian investment behavior occurred in January 2026. For the first time, net inflows intosurpassed actively managed equity mutual funds. AMFI data shows gold ETFs pulled in ₹24,040 crore, effectively doubling month-on-month.

Furthermore, total gold ETF holdings in India crossed the 100-tonne milestone for the first time. This “Gold Rush” indicates a strategic pivot toward defensive assets amid equity market volatility. Still, many of these new investors faced immediate paper losses as prices began to cool in late January.

Reality Check

The 12% price drop is framed as a “relief for buyers.” Still, the correction was largely a mechanical adjustment to duty cuts rather than a collapse in underlying demand. Therefore, the “cheap gold” narrative is relative; prices remain nearly 70% higher than they were eighteen months ago. In fact, even after the crash, 10 grams of 24K gold still costs over ₹1.54 lakh, keeping it out of reach for the average middle-class wedding budget.

The Loopholes

Many jewellers are offering “Budget Protection” schemes to lock in prices. In fact, these schemes often include hidden making charges that offset the duty-cut benefits. Therefore, a lower per-gram rate does not always result in a lower final invoice. Still, the ECI’s strict monitoring of bullion movement during the upcoming March 16 Rajya Sabha elections may create a temporary supply squeeze in certain states, potentially inflating local “black market” premiums.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

What This Means for You

If you are planning a wedding or investment, realize that the market is currently in a “wait and see” phase. First, check the international spot price; if it drops below $4,850, domestic prices may see another leg down. Then, consider a systematic investment plan (SIP) for Gold ETFs rather than a lump-sum physical purchase to mitigate volatility.

Finally, verify the hallmark and HUID on any physical jewellery purchased during this stagnation. You should avoid panic selling your existing holdings, as analysts maintain a long-term target of $5,400 per ounce by year-end. Before buying, compare rates between multiple cities if you are making a high-value purchase, as the Chennai-Mumbai gap can save you thousands on 100 grams.

What’s Next

The US Federal Reserve will release the FOMC minutes later this week, which could trigger the next major gold move. Then, the Indian wedding season “Muhurat” dates in late February are expected to test physical demand at these lower levels. Finally, the next major price pivot is anticipated around the March 20 completion of the Rajya Sabha election cycle.

Also Read |Tamil Nadu Voter List Purge: 97 Lakh Names Deleted in SIR Phase 1

End…

Add businessleague.in as a Preferred Source