Silver prices have plunged nearly 3 percent in today’s trading session. Silver prices tumbled 2.5 percent on the Multi Commodity Exchange and opened at 187,777.00. According to goodreturns.in, today’s silver price in India stands at Rs 210 per gram and Rs 2,10,000 per kilogram.
Experts believe a stronger US dollar, rising bond yields and industrial demand worries have weighed on the rates of the precious metal. This steep decline is being witnessed during the festive season when silver jewellery, coins, utensils and investment products are popular purchases and gifting choices. Kunal Shah, Head of Commodities and Currencies Research at Nirmal Bang told Times Now Digital that the “stronger dollar, higher interest rate expectation and expectation of high crude oil prices may fuel inflation and warrant more rate hikes.”
Experts believe during the festive season this decline could improve affordability for consumers, particularly those eyeing purchases for Diwali or for the wedding season. Kunal Shah, Head of Commodities and Currencies Research at Nirmal Bang said, “Silver prices are declining partly because demand from the solar panel industry, a key driver of silver consumption, is expected to fall by nearly 20%. Jewellery demand from India and China was down and stronger dollar, higher interest rate expectation and expectation of high crude oil prices may fuel inflation and warrant more rate hikes led to fall in silver prices.” For investors, analysts caution that volatility could persist, making it important to avoid decisions based solely on a single day’s price movement.