Finance1 min read

Silver price crash deepens as Oct losses hit ₹45,000/kg; gold falls to 7-month low: Why are precious metals sinking?

By · Published by Everything Blog

In short

Lingering inflationary pressures and climbing crude oil prices have undermined the appeal of non-yielding commodities across global markets. Recent data showing US third-quarter GDP growth at 3.4% alongside an accelerating PCE price index has solidified market expectations of tighter policy. Consequently, traders currently assign an approximate 75% probability that the Federal Reserve will raise rates in December after its recent 10-2 pause.

Key points

  • Strong US economic indicators and persistent inflation have increased expectations for a…: Strong US economic indicators and persistent inflation have increased expectations for a Federal Reserve rate hike in December.
  • Geopolitical tensions in the Strait of Hormuz are sustaining elevated energy prices, putt…: Geopolitical tensions in the Strait of Hormuz are sustaining elevated energy prices, putting crude on track for a fourth monthly increase.
  • Worldwide inflationary pressures, including Tokyo core inflation exceeding the Bank of Ja…: Worldwide inflationary pressures, including Tokyo core inflation exceeding the Bank of Japan's two percent target, continue dampening demand for non-yielding metals.

Sources checked by our analysis pipeline: 1

The crash in silver prices deepened further in Friday’s trade, with the December delivery contract on the Multi Commodity Exchange (MCX) plunging another ₹10,577 per kg. The contract broke below the ₹1.80 lakh mark to hit the day’s low of ₹1,79,600 per kg.

The white metal was last seen trading around these levels in December. Friday’s losses widened its October decline to nearly ₹45,000 per kg, putting it on track for its biggest monthly fall of 2026.

Silver, which enjoyed an uninterrupted bull run in 2025, has given up more than 50% of those gains as rising crude oil prices and persistent inflation concerns reinforced expectations of US interest rate hikes.

Similarly, gold prices extended their decline for a third consecutive session in trade, falling another ₹4,347 per 10 grams to hit the day’s low of ₹1,38,249, their lowest level since late March. In October, prices have retreated by ₹10,787 per 10 grams, following a decline of ₹5,400 in September.

From its record high of ₹4,20,048 per kg, silver has lost 57% of its value. The sharp correction follows a…

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