Silver Crash Deepens! Prices Fall Below Rs 1.80 Lakh Per Kg In India, Hit $47.50 Globally, Gold Also Slides

Silver prices extended their steep decline on Saturday, falling further in domestic futures trading after crashing to an 11-month low in Delhi on Friday. The international price of the white metal also slipped below $50 an ounce, touching approximately $47.50, as mounting inflation concerns, rising crude oil prices and expectations of higher US interest rates triggered a massive sell-off in precious metals.

On the Multi Commodity Exchange (MCX), silver futures for December delivery were trading at around Rs 1,78,900 per kg at 12:12 pm on Saturday, down Rs 10,553, or 5.57 per cent, from the previous close of Rs 1,89,453. The contract had already suffered a sharp decline during Friday's session, taking its October losses to nearly Rs 45,000 per kg.

In the physical bullion market, silver prices in Delhi plunged by Rs 8,300 to Rs 1,90,200 per kg on Friday, their lowest level in nearly 11 months, according to the All India Sarafa Association. The metal was last quoted around similar levels on December 10, 2025.

Gold prices have also come under considerable pressure. In Delhi, 99.9 per cent pure gold declined by Rs 1,300 to Rs 1,45,200 per 10 grams on Friday. International spot gold slipped below the $3,900 mark, touching around $3,875.84 per ounce.

The sharp correction has been driven by concerns that rising energy prices could fuel inflation and force the US Federal Reserve to maintain higher interest rates or consider another hike. Stronger-than-expected US economic growth and persistent inflation have further weakened investor appetite for precious metals.

Adding to the pressure, a sharp sell-off in technology stocks amid concerns over heavy investments in artificial intelligence (AI) has prompted investors to liquidate positions across financial markets to cover losses elsewhere.

Silver's longer-term outlook is also facing fresh uncertainty. According to Metals Focus, the global silver market could move from a supply deficit to a surplus in 2027 as inventories recover, jewellery demand weakens and industrial consumption slows. Manufacturers are also reducing silver usage or exploring alternatives, particularly in solar panels.

The latest downturn has therefore raised concerns about whether the precious metals rally can regain momentum, even as lower prices offer some relief to buyers preparing for the upcoming Dhanteras and Diwali shopping season.