India Market Report Feb 28: Gold Hits ₹1.61 Lakh, Fuel Prices Steady, and Dairy Outlook 2026

Bullion Market: Navigating the New Normal for Precious Metals

As we close out February, the gold market is finally catching its breath, but don’t let today’s quiet trading mask the bigger picture. It has been a volatile start to the year. Following sharp spikes in January, prices have essentially settled into a high-altitude plateau. Seeing gold hover above the ₹1.6 lakh mark is a major shift for retail buyers who likely remember ₹60k rates quite vividly. Current demand isn’t just driven by jewelry; safe-haven buying amidst global uncertainty is keeping the price floor significantly elevated.

Today, 24-carat gold is trading at approximately ₹16,158 per gram in Mumbai, showing almost no change from yesterday. In Delhi, the rate is slightly higher at ₹16,171. Silver is following a similar script, consolidating its gains near ₹2,84,900 per kilogram. If you are planning a purchase, it is currently a “wait and watch” moment, though experts suggest the long-term trend remains bullish.

City-wise Gold and Silver Rates (Feb 28, 2026)

Note: Data based on 2026-02-28.

According to data from
India.com, Chennai continues to command a premium due to higher local taxes and robust demand for physical bars. Interestingly, silver in southern metros like Hyderabad and Chennai is still hovering near the ₹2.95 lakh mark, keeping industrial buyers on their toes.

Fuel Prices in India: Stability at the Pump Continues

For daily commuters, price stability is the best news right now. Despite typical global crude volatility, Indian state-run oil marketing companies (OMCs) have kept fuel prices remarkably steady. It has been several months since we saw a significant revision at the pump. In Delhi, petrol remains anchored at ₹94.72 per litre, while Mumbai residents continue to pay around ₹103.54.

There is also significant progress regarding ethanol blending. By hitting the 20% blending target ahead of schedule, the government has been better equipped to manage retail prices even when Brent crude fluctuates. This serves as both an environmental initiative and a strategic buffer for your wallet. Meanwhile, CNG prices have seen minor city-specific adjustments, but nothing that would disrupt a monthly budget significantly.

Current Petrol, Diesel, and CNG Rates

Note: Data based on 2026-02-28.

Recent updates from
The Financial Express indicate that OMCs are maintaining these rates despite minor daily shifts in international benchmark prices. For consumers, this offers one less variable to worry about when planning travel.

Food Prices and Dairy Outlook: Relief for Indian Households

Local markets are currently more affordable than they were three months ago. There has been a sharp cooling in the prices of staples like potatoes and onions. Based on the latest Wholesale Price Index (WPI) data, potato prices saw a massive year-on-year drop of nearly 38% in January, and that trend has mostly carried through February. This is a clear case of supply-side recovery after a difficult year for farmers.

Perhaps the most reassuring news for households involves the dairy sector. The Indian Dairy Association (IDA) recently stated that milk prices are expected to remain stable throughout 2026. This is largely because the cost of cattle feed has stabilized and production is currently in a surplus state. This means the price of a morning cup of tea is unlikely to rise anytime soon.

Monthly Wholesale Price Trends

Note: Data based on 2026-02-28.

For more details on dairy production forecasts, the
EDairy News India report highlights that balanced producer costs are the primary reason for this price freeze.

Economic Outlook: Growth Resilience Amid Global Pressure

The big picture for India remains bright, though it comes with necessary caution. The RBI Governor recently pointed out that the domestic economy is being driven by internal factors, primarily domestic consumption. GDP growth for the current fiscal year has been revised upward to 7.6%, maintaining India’s status as the fastest-growing G20 economy. The data continues to support this strong trajectory.

However, global markets remain nervous. Geopolitical tensions in the Middle East and trade frictions between major powers suggest that market volatility will persist. For investors, the general consensus is to stay diversified. While equity remains attractive due to long-term structural changes in the Indian economy, it is wise to balance portfolios against global uncertainties.