Gold Today Rate, February 26: Prices Soften Further Across Major Cities

Gold prices in India continued their downward trajectory on Thursday, February 26, 2026, as the market reacts to the fallout from the recent Union Budget. After a record-breaking rally in January that saw the yellow metal rise by nearly 20%, the trend has reversed sharply.

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Investors who were late to the party in January are now witnessing a 12% price correction in just under two weeks. Despite this volatility, the retail demand for 22K jewellery gold remains steady as the wedding season approaches its peak.

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National Gold Rates: 24K, 22K, and 18K

The price of gold varies based on its purity, with 24K (99.9% pure) serving as the investment benchmark, while 22K and 18K are the standards for intricate jewellery.

City-Wise Comparison: Where is it Cheapest?

Local taxes, octroi, and transport costs create price variations across Indian metros. Chennai currently holds the title for the highest rates, while the “Gold Hubs” of Mumbai and Bangalore offer the standard national rate.

• Chennai: ₹16,277 (24K) | ₹14,920 (22K)

• Mumbai/Kolkata: ₹16,168 (24K) | ₹14,820 (22K)

• Delhi: ₹16,183 (24K) | ₹14,835 (22K)

• Vadodara/Ahmedabad: ₹16,173 (24K) | ₹14,825 (22K)

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Post-Budget Volatility: Why Prices Are Falling

The Union Budget 2026 appears to have reset the valuation of gold in India. The reduction in import duties and the shift in investor sentiment toward Gold ETFs (Exchange Traded Funds) have created a temporary “supply-heavy” environment. Additionally, the record highs of January triggered a massive profit-booking cycle by institutional investors, leading to the current 10-day slump.

Reality Check

The 12% drop in 10 days is staggering. Still, gold remains up year-on-year. Therefore, while this looks like a “crash” in the short term, it is actually a return to more sustainable pricing levels following the January “bubble.” In fact, for a retail buyer, the making charges on jewellery (often 10–20%) will still keep your final purchase price significantly higher than these spot rates.

The Loopholes

Gold is currently “down.” In fact, this is a “Market Correction Loophole”—while the physical price is falling, the Gold ETF inflows are at record highs. Therefore, professional investors are actually “buying the dip” through digital means while retail buyers are hesitating at the counter. Still, the “Budget Loophole”—where duty cuts take time to reflect at local jewellers—means you might not see the full ₹210/10gm drop at your local shop immediately.

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What This Means for You

If you are planning to buy gold for a wedding, this is a strategic entry window. First, realize that the 12% correction has wiped out almost all of January’s artificial gains. Then, if you are an investor, consider Digital Gold or ETFs, as they track these falling prices more accurately than physical shops.

Finally, understand that GST (3%) is applicable on top of these listed rates. You should always insist on a Hallmarked (HUID) piece to ensure you are getting the purity you pay for. Before you head to the store, check if your local jeweller offers “Price Lock” facilities to hedge against any sudden spikes tomorrow.

What’s Next

Market analysts expect gold to stabilize near the ₹16,000 (24K) mark by the end of this week. Then, look for the US Fed’s commentary early next month, which will dictate if the global dollar strength continues to weigh down gold. Finally, expect a surge in jewellery bookings by the second week of March as buyers take advantage of this lower price floor.

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End….

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