Silver prices drop sharply in India while experts eye recovery

Silver prices in India crashed by around ₹2,23,500 per kg from their record high of ₹4,20,048 per kg, hitting an eleven-month low before seeing some buying interest. The Multi Commodity Exchange silver rate opened higher at ₹1,96,257 per kg, touched an intraday high of ₹1,97,186, and then retraced to around ₹1,96,625 per kg. Despite a small rebound, the precious white metal sits at a year-to-date low.

Market Causes

Market experts state that silver prices rose today due to an easing in crude oil prices and a correction in US bond yields. The US 10-year bond yield slipped below 5%, providing relief for equities, gold, and silver. Anuj Gupta, a SEBI-registered market expert, noted that US bonds were the main beneficiaries of the AI meltdown, but investors are now shifting money into other assets due to geopolitical tensions affecting equities.

Expert Outlook

Experts expect silver prices to touch ₹2,05,000 per kg this week as the market anticipates a status quo at the upcoming US Federal Reserve meeting. However, Nirpendra Yadav, a senior research analyst at Bonanza, advised investors to avoid aggressive buying because steep corrections do not mean prices have bottomed out. In the long term, silver could benefit from structural demand linked to clean energy, electrification, and industrial applications.

Context

Silver is a precious metal widely tracked on commodity exchanges alongside gold, and its prices are influenced heavily by global bond yields, currency movements, and industrial demand. Price drops of this scale highlight the high volatility typical of the bullion market compared to traditional currency or fixed-income assets.