Silver prices have plunged below ₹2 lakh per kg on the Multi Commodity Exchange (MCX) for the first time since December 2025, as a relentless sell-off wiped out the metal’s gains for 2026. The white metal fell to ₹1,92,800 per kg on Friday after losing around ₹6,800 in a single session, extending its decline amid rising crude oil prices, persistent inflation concerns and expectations of tighter US monetary policy.
The correction has been steep. Silver has dropped 22.5% from its August 2026 peak of ₹2,48,800 per kg and more than 50% from its January record high of ₹4,20,048 per kg. Over the past 10 trading sessions, prices have fallen by more than 14%, erasing ₹32,955 per kg from the baseline cited in the market data. Silver is also down 6.38% in October alone.
Gold has also weakened, declining 0.29% on Friday while hovering near a three-month low of ₹1.40 lakh per 10 grams. It has fallen around ₹23,000 per 10 grams from its August peak of ₹1,64,773. Both gold and silver are heading towards a second consecutive monthly decline.
The latest fall has also put silver on track for a fifth consecutive weekly loss, raising a crucial question for investors: does the sharp correction offer a buying opportunity, or could prices fall further?
Silver has faced intense selling pressure in October as escalating tensions in the Middle East and surging energy prices have revived concerns about inflation. Brent crude approached $115 per barrel on Friday, nearing its four-year high of $115.25 reached on May 4. Houthi attacks on Saudi targets and reports of possible renewed US strikes against Iran have heightened concerns over disruptions to Middle Eastern oil supplies.