Gold, Silver rates crash: What happened with precious metal rates? What didn't go in favour and brought them down?
Gold and silver prices have taken a sharp hit, wiping out a significant chunk of their previous gains and catching safe-haven investors off guard. In a steep sell-off on Friday, silver plunged by ₹10,577 per kg on the multi commodity exchange (MCX), while gold tumbled ₹4,347 per 10 grams.
As per MCX data, gold futures fell to ₹1,38,419 per 10 grams and silver rates dropped to ₹1,78,900 per kg at its closing hour yesterday.
Friday's decline has put silver on track for its biggest monthly fall of 2026, while gold slipped to its lowest level since late March. This further raised questions about what went wrong for the precious metals.
After a strong rally last year that extended into January 2026, a combination of unfavorable factors appears to have turned the tide. It is important for traders who invest in gold futures and derivative contracts to understand what is driving this decline to assess their current positions and decide their next move.
According to a PTI report, gold and silver prices came under pressure from rising energy prices, which fuelled concerns about inflation. Another contributing factor is the hawkish commentary from the US Federal Reserve.
A hawkish stance indicates that the Fed is more inclined to keep interest rates high to contain inflation, rather than cut them soon.
These developments tempered expectations of monetary easing and weighed on precious metals, which do not offer regular interest income. As a result, investors reassessed their positions.
Higher oil prices and firm inflation have further revived expectations of a December Fed hike, strengthening the case for higher-for-longer interest rates by the US Federal Reserve.
Spot gold also plunged in overseas market, dropping by $145.84, or nearly 4%, to close at $3,875.55 per ounce on Friday, hitting its lowest level in over a year. It was last priced around this level at $3,887.09 per ounce on October 3, 2025.
Spot silver also fell by $3.04, or 6%, to settle at $49.12 per ounce. The metal was last quoted at $48.02 per ounce, recorded on November 6, 2025.
The news agency report also cited the AI-led equity rout as a factor, as investors facing losses in stocks may have been forced to liquidate other assets for cash. Silver's industrial demand exposure may have further amplified its decline.
In China, reports of investors selling gold to raise cash are a possible additional factor, though not confirmed, the report added.
Despite the sharp correction, there is still some hope left for domestic markets. The upcoming festive and wedding-related purchases in India is expected to support demand for precious metals in November, according to PTI.
Gold purchases typically rise during the festive season in India, with many households buying jewellery, coins and bars for investment or as part of tradition. This uptick in demand is often witnessed during Akshaya Tritiya and Dhanteras, when buying the yellow metal is considered auspicious. This year, Dhanteras falls on November 6, 2026.
Meanwhile, steady gold purchases by central banks globally will continue to provide a cushion to prices, it added. Silver also has an additional demand driver in its industrial applications, particularly in solar panels and electronics, even though this exposure also makes the metal more volatile.
Silver has lost more than 50% of its value from its record high of ₹4,20,048 per kg in January. The sharp decline follows a 170% surge in silver prices in 2025. Gold has also witnessed a steep decline, falling ₹42,321 per 10 grams from its record peak of ₹1,80,779 in the same month as silver.
Gold is traditionally considered a hedge against inflation and a safe-haven asset during periods of geopolitical uncertainty. However, higher interest rates reduce its appeal as investors turn towards yield-bearing assets.
Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.
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