Silver prices are trading more than 53% below their all-time high, with Middle East tensions and persistent inflation, driven largely by elevated energy costs, fuelling expectations of tighter monetary policy.
Price movement
Silver hit a record of nearly $117 per ounce on January 28, 2026. By October 23, it had fallen to just above $54 per ounce.
Domestic prices followed the same path. Spot silver on the Multi Commodity Exchange (MCX) rose to a high of Rs 3,79,983 per kg on January 29, then fell to a low of Rs 1,94,170 on October 23. The previous low this year was Rs 2,04,383 on March 23.
In futures trading, the December 4 contract was at Rs 1,95,500 per kg at 09:48 IST on October 26.
In Ahmedabad, silver fell to Rs 1.98 lakh per kg on Friday, dropping below Rs 2 lakh for the first time in 10 months, according to the Times of India.
Spot silver is the current price for immediate purchase and delivery. Futures are exchange-traded contracts to buy or sell silver at a fixed price on a future date.
What is weighing on prices
The decline reflects several factors:
- Profit-taking after the earlier rally
- Shifting expectations about US interest rates
- Movements in the dollar and bond yields
- Uncertainty about global industrial demand
Haresh Acharya of the India Bullion and Jewellers Association said a stronger US dollar, elevated bond yields and expectations of a hawkish US Federal Reserve have weighed on precious metals.
Analyst view
Renisha Chainani, Chief Research Officer at Augmont, said the slide is less a collapse in fundamentals than the unwinding of an overcrowded, leveraged rally. She noted that prices had run far ahead of demand, and that rising bond yields, a hawkish Fed outlook and forced liquidation have squeezed out the speculative premium.
Key events to watch
- The US Federal Reserve's meeting on October 27–28
- This week's PCE inflation data
- ETF flows
- Geopolitical developments, particularly in the Middle East
- Rupee movements, which can influence domestic metal prices
Sources: Moneycontrol and The Times of India.
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