Silver Prices Hit 11-Month Low in India as Market Slips Below Two Lakh Rupees

Silver prices have dropped sharply in India, falling below two lakh rupees per kilogram to trade at roughly one lakh ninety-five thousand rupees after shedding nearly four thousand five hundred rupees on Friday. ## Market Drop The precious metal is now sitting at an eleven-month low across both domestic and international markets, marking a steep fifty-three point five zero percent decline from its record peak of four lakh twenty thousand forty-eight rupees hit on January twenty-ninth, twenty twenty-six. Analysts point to falling industrial demand and a high-interest-rate environment as the main drivers behind this heavy selling pressure.

Expert Views

Anuj Gupta, a SEBI-registered market expert, notes that a slump in solar panel production in China and a slowdown in chip-making linked to the artificial intelligence sector have hurt industrial demand. Meanwhile, expectations of US Federal Reserve rate hikes have kept bond yields strong and limited the metal's appeal for investors. Nirpendra Yadav of Bonanza highlights that easing supply limits and narrower premiums are adding to domestic price corrections. Amit Goel of PACE 360 expects these pressures to fade soon, predicting silver could finish December twenty-six between two lakh thirty-five thousand and two lakh forty thousand rupees per kilogram.

Context

Silver often experiences sharp price swings because it is used both as an industrial raw material and as a financial investment. When global economic conditions change or key industries slow down, prices can drop quickly before finding a new balance.