Silver Hits 11-Month Low in Delhi as Global Sell-Off Drags Down Precious Metals

Precious metals experienced a sharp sell-off on Friday, with silver prices in the national capital tumbling by ₹8,300 to touch ₹1,90,200 per kilogram. This marks the lowest level for the white metal in nearly 11 months, mirroring a steep decline in international markets.

According to the All India Sarafa Association, gold of 99.9 per cent purity also declined, falling by ₹1,300 to ₹1,45,200 per 10 grams, inclusive of all taxes, down from its previous close of ₹1,46,500 per 10 grams.

Silver retreated after posting modest gains in the previous session, dropping sharply from its previous close of ₹1,98,500 per kg. The precious metal was last trading around these levels on December 10, 2025, when it was quoted at ₹1.92 lakh per kilogram. Globally, silver fell below the $50 threshold, tanking by $3.1, or 6 per cent, to $49.06 per ounce, its lowest point since November 21, 2025.

International spot gold similarly slipped below the $4,000 mark, falling $122.06, or 3.04 per cent, to $3,899.33 per ounce. Analysts note that spot gold slipped below $3,900 per ounce for the first time since mid-July.

Commenting on the domestic market, Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, stated that gold prices extended losses as bearish global factors affected overall market sentiment.

Ashish Rajodiya, Head of Commodities at PL Capital, noted that elevated crude oil prices, inflation concerns, and expectations of tighter US monetary policy weighed heavily on bullion, driving silver to its weakest level in 11 months.

Kaynat Chainwala, AVP Commodity Research at Kotak Neo, highlighted that stronger-than-expected US GDP growth and a hotter inflation print have kept the path open for another Federal Reserve rate hike this year. Chainwala added that concerns over the sustainability of AI-related investments and a sharp sell-off in technology stocks raised the risk of investors liquidating precious metals positions to cover losses elsewhere.

Furthermore, gold and silver are currently headed for monthly declines of more than 4 and 16 per cent, respectively. Broader deleveraging across financial markets also saw investors favoring US Treasuries as a safe haven during recent risk aversion, limiting capital inflows into non-yielding metals despite softer bond yields and a weaker dollar.

"The recent sharp decline in precious metals highlights the interconnectedness of global financial markets, where shifts in technology investments, monetary policy expectations, and equity sell-offs can trigger rapid deleveraging. For businesses and investors, such volatility underscores the importance of maintaining strong liquidity management and carefully monitoring macroeconomic indicators like inflation prints and central bank rate trajectories rather than relying solely on traditional safe-haven assets during periods of widespread market stress." — Dr. Shishir Gupta, Founder & CEO, StartupLanes