Gold Prices Crash: Fed Rate Cut Bets Dim, Impacting Indian Markets on 12 February 2026

Gold and silver markets experienced a significant downturn on February 12, 2026, with prices crashing sharply both internationally and across Indian cities. This sudden slump was primarily driven by robust US jobs data, which cooled expectations of imminent interest rate cuts by the Federal Reserve. As a result, non-yielding precious metals became less attractive to investors seeking higher returns elsewhere.

Globally, Comex gold slipped by $33 per ounce, while silver saw an even steeper decline, falling $3 per ounce, representing an 8.8% plunge for silver and a 2.3% drop for gold. The repercussions were immediate and substantial in India. Gold prices fell by ₹1,175 to ₹1,56,147, while gold futures dropped ₹780 per 10 grams to ₹1,57,975. Silver bore the brunt of the selling pressure, with prices crashing by ₹7,316 to ₹2.59 Lakh per kilogram, and MCX silver slipping 2% to ₹2.58 lakh per kg. Major Indian cities like Delhi, Mumbai, Kolkata, Bengaluru, and Chennai all reported significant declines in 22K and 24K gold rates, impacting both investors and jewelry buyers.

The primary catalyst for this widespread correction was the strong US jobs report, which signaled a resilient economy. This data led market participants to believe that the US Federal Reserve might delay or reduce the number of interest rate cuts anticipated for the year, strengthening the dollar and diminishing the appeal of gold as a safe-haven asset. Adding to the market's watchful stance, the ongoing China Lunar New Year period is also being closely monitored for its potential impact on demand dynamics.

For Indian investors and jewelry shoppers, today's sharp fall presents a complex picture. While the immediate outlook suggests continued pressure due to global macroeconomic factors, some analysts, like Emkay Wealth, are forecasting that gold and silver prices are entering a 3-5 year bull phase, implying that current dips could be considered buying opportunities for those with a long-term perspective. However, short-term volatility is expected to persist as markets digest economic data and adjust to evolving monetary policy expectations.