Silver price drops sharply as October loss nears ₹45,000 per kg, gold hits 7-month low
Silver fell another ₹10,577 per kg on Friday, extending its October decline to about ₹45,000, while gold slipped to its lowest level since March amid inflation and interest-rate concerns.
Silver prices deepened their fall on Friday, with the December delivery contract on the Multi Commodity Exchange slipping another ₹10,577 per kilogram to a low of ₹1,79,600. The decline brings October's total loss to nearly ₹45,000 per kilogram, positioning the metal for its steepest monthly drop of 2026. After a strong rally in 2025, silver has surrendered more than half of its gains as higher crude oil prices and persistent inflation have heightened expectations of further U.S. interest-rate hikes.
Gold also continued its slide for a third straight session, losing ₹4,347 per 10 grams to reach ₹1,38,249, the lowest level since late March. October's cumulative decline stands at ₹10,787 per 10 grams, following a ₹5,400 drop in September. From their record peaks, silver has lost 57% of its value and gold has fallen ₹42,321 per 10 grams.
Analysts attribute the correction to rising inflation indicators, including a 0.5% month-on-month increase in the U.S. Personal Consumption Expenditures price index for September and an annual inflation rate of 3.6%. U.S. GDP grew at an annualised 3.4% in the third quarter, outpacing expectations, while the Federal Reserve kept its policy rate unchanged at 3.75%-4% after a 10-2 vote.
Higher energy prices, driven by ongoing geopolitical tensions and a recent tanker attack in the Strait of Hormuz, have reinforced expectations of prolonged elevated rates, reducing the appeal of non-yielding assets such as gold and silver. Traders now assign roughly a 75% probability to a rate hike in December, according to the CME FedWatch Tool.