Silver Prices Plummet as Global Trends and US Dollar Strength Weigh In
In a dramatic turn of events, silver prices in New Delhi have witnessed a significant decline for the third consecutive day, with a staggering drop of Rs 52,000, bringing the price down to Rs 2.60 lakh per kg. This sharp decrease can be attributed to weak global trends and the strength of the US dollar.
According to the All India Sarafa Association, the white metal has experienced a nosedive of Rs 52,000, representing a nearly 17 percent decrease, to reach Rs 2,60,000 per kilogram (inclusive of all taxes).
Just two days prior, on Saturday, silver prices took a massive hit, plummeting by 19 percent, or Rs 72,500, to Rs 3.12 lakh per kilogram.
Over the course of the last three trading sessions, silver prices have tumbled by Rs 1,44,500, marking a substantial decline of nearly 36 percent from its recent all-time high of Rs 4,04,500 per kg recorded on January 29.
Gold Prices Follow Suit with a Sharp Decline
Gold, known for its stability, also felt the brunt of the recent sell-off, witnessing a crash of Rs 12,800, or 7.73 percent, to settle at Rs 1,52,700 per 10 grams (inclusive of all taxes) on Monday. This significant drop comes after the metal was priced at Rs 1,65,500 per 10 grams in the previous trading session.
Similarly, gold prices have seen a notable plunge of Rs 30,300, or nearly 17 percent, from its peak of Rs 1,83,000 per 10 grams on January 29, as many investors rushed to secure profits following a sharp rally.
Market Analysts’ Insights on the Situation
Market experts have weighed in on the current scenario, attributing the decline in gold and silver prices to various factors. Manav Modi, an Analyst at Motilal Oswal Financial Services Ltd., pointed out that the surge of the US dollar amid tariff negotiations by President Donald Trump and de-escalation between the US and Iran, along with delayed US shutdown fears, have contributed to the downward pressure.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted that the recent Union Budget for 2026-27 did not bring any changes to gold and silver import duties in the domestic market, contrary to market expectations. This absence of a potential catalyst has impacted prices in the country.
Global Market Trends
On a global scale, both gold and silver have mirrored the bearish trend, with the spot price of gold slipping by USD 83.75, or 1.72 percent, to USD 4,781.60 per ounce.
Praveen Singh, Research Analyst at Mirae Asset Sharekhan, noted that spot gold prices have been under intense selling pressure due to a strong dollar and President Trump’s nomination of Kevin Warsh as the next Fed Chair.
Similarly, spot silver prices have also witnessed a decline, slipping by USD 1.2, or 1.42 percent, to USD 83.49 per ounce in the overseas trade.
Overall, the precious metals market is experiencing a period of volatility and uncertainty, driven by a combination of global factors and market dynamics.
