Gold Silver Price Update: Silver Crashes Again, May Fall Below Rs 2 Lakh

Gold and silver prices have witnessed sharp declines in the Indian bullion market, triggering panic among investors. Silver, in particular, has seen a massive fall on the MCX, raising concerns over whether prices could slip below the Rs 2 lakh mark in the coming days.

Gold and Silver Prices Slide Sharply in Indian Market

The Indian bullion market has gone through a turbulent phase over the past few days, leaving investors deeply unsettled. On the Multi Commodity Exchange (MCX), both gold and silver prices have registered steep declines simultaneously.

Silver buyers have been especially disappointed, as the metal has continued to lose its shine. On MCX, silver prices fell to Rs 2,35,221 per kilogram. According to market data, silver opened nearly Rs 15,000 lower, although the decline later narrowed to around Rs 9,000.

Will Silver Fall Below Rs 2 Lakh?

Market experts believe that the ongoing fall in silver prices could be historic. The current decline is being compared to a record-breaking move seen nearly 50 years ago.

In 1980, silver prices had dropped 70% from their peak within five months. In recent days, silver has already fallen by more than 46%. If this downward trend continues into next week, analysts warn that silver prices could slip below Rs 2 lakh per kilogram.

Gold Also Under Pressure, Prices Remain Volatile

Gold has not been spared either. Trading on MCX began on a weak note for the yellow metal as well. Fluctuations in gold prices have left buyers uncertain.

Currently, gold is trading around Rs 1,50,699 per 10 grams. While the fall in gold prices has been less severe compared to silver, the steady decline clearly indicates that market sentiment remains fragile.

Why Are Gold and Silver Prices Falling?

Investors are questioning what triggered such a sudden collapse in precious metal prices. The root cause of this decline lies in global market developments.

The most significant factor is the strengthening of the US dollar. The Dollar Index has climbed to a two-week high. When the dollar strengthens, gold becomes more expensive for buyers using other currencies, reducing demand and pushing prices lower.

Another key reason is the easing of trade tensions between the US and China. As geopolitical risks soften, investors tend to move funds out of safe-haven assets like gold and silver and redirect them toward equities and other riskier assets.

Global Markets Also Witness Sharp Declines

The sell-off is not limited to India. Precious metals have seen heavy losses in the global markets as well.

• Spot gold prices dropped by nearly 2.5%, falling to $4,838.81 per ounce

• Spot silver recorded a massive 14.9% decline, trading at $74.94 per ounce

The sharp fall across global markets has further intensified pressure on domestic bullion prices.