Silver fell Rs 4,000 to Rs 1.98 lakh a kilogram in Delhi on Tuesday, below Rs 2 lakh for the first time in over 10 months. Global prices fell to about $53 an ounce, near an 11-month low, ahead of the Fed's decision.
At a glance
- Silver is now about 56% below its January record of $121.76 an ounce and down over 21% in two months.
- Gold of 99.9% purity fell Rs 500 to Rs 1,45,800 per 10 grams in Delhi.
- Silver ETFs listed in India have fallen more than 50% from their 52-week highs.
Background
Indian silver prices follow global prices in dollars, plus import duty and the rupee exchange rate. Delhi prices from the All India Sarafa Association include all taxes. Silver is used both as an investment and in industry, especially in solar panels and electronics, so it often swings more sharply than gold.
What happened
Silver dropped Rs 4,000 to Rs 1.98 lakh per kilogram, inclusive of all taxes, in Delhi on Tuesday, PTI reported. That is its lowest level in 10 months, according to the All India Sarafa Association. It had closed at Rs 2.02 lakh on Monday.
Gold of 99.9% purity fell Rs 500 to Rs 1,45,800 per 10 grams. In global markets, silver fell more than 1% to $53.41 an ounce, while spot gold edged down to $4,011.44.
Why prices fell
A stronger dollar and weak international prices weighed on bullion, said Jateen Trivedi of LKP Securities. Investors are cautious before the Federal Reserve's policy decision on October 28.
Silver is trading near an 11-month low and has fallen more than 21% in two months, Business Standard reported. Gaurav Garg of Lemonn said silver is underperforming gold, with selling pressure below $54 an ounce and concerns about industrial demand.
What it means for investors
Silver exchange-traded funds in India fell about 2% on Tuesday. DSP Silver ETF traded at Rs 18.17, down 53.4% from its 52-week high of Rs 39 on January 29.
Ponmudi R, chief executive of Enrich Money, sees the near-term trend for silver as cautiously bearish and says a sustained move above $54 an ounce is needed to steady prices.
Our read
Outlook: bearish. A firm dollar, caution before the Fed and weak industrial demand are pressing silver lower, and analysts see the near-term trend as bearish.
What to watch
- The US Federal Reserve's decision on October 28 and guidance on future rates.
- Whether silver holds near $53 an ounce or breaks lower.
- Festive demand for silver in India around Dhanteras and Diwali.
For information only, not investment advice.
Silver price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-01-29: Silver ETFs in India hit their 52-week highs as silver nears its record.
- 2026-10-27: Silver falls below Rs 2 lakh per kg in Delhi for the first time in more than 10 months.
What could lift prices
- Lower prices could draw festive buying in India around Dhanteras and Diwali.
- Silver has already fallen about 56% from its January record.
What could weigh on prices
- A stronger dollar is weighing on precious metals.
- Analysts see the near-term trend as cautiously bearish below $54 an ounce.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | High | Silver fell below Rs 2 lakh per kg in Delhi for the first time in more than 10 months. |
| United States | Medium | The Federal Reserve's October 28 decision is driving dollar and bullion moves. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Silver Jewellery & Silverware | Positive | Lower silver prices cut costs for jewellers and buyers ahead of the festive season. |
Who gains, who loses
- Silver jewellery buyers in India: Silver is about Rs 4,000 per kg cheaper than a day earlier.
- Silver ETF investors: Some Indian silver ETFs are down more than 50% from their January highs.
Other ways this could play out
- If the Fed signals fewer rate rises, silver could recover above $54 an ounce.
- If the dollar strengthens further, silver could fall towards new lows.
Price risks
- A hawkish Fed would add pressure on precious metals.
- Weaker industrial demand would weigh on silver more than on gold.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
India
United States