# Bullion Markets Tumble as Silver Breaches ₹2 Lakh Level to Hit Multi-Month Low

> Silver prices dropped sharply by ₹4,000 to touch ₹1.98 lakh per kilogram in Delhi, while gold eased ₹500 amid persistent global weakness and dollar strength.

**Type:** article · **Category:** Business · **Published:** 2026-10-28 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/sarrapha-bajara-men-chandi-aundhe-munha-giri-10-mahine-bada-2-lakha-ke-niche-phisale-dama-52458 · **Language:** English
**Tags:** Silver Price, Gold Price, Bullion Market, Commodities, Federal Reserve, Delhi Sarafa, Gold Rate Today, Silver Rate Today

Precious metal prices came under intense selling pressure in Delhi's spot bullion market on Tuesday, dragging silver below the crucial ₹2 lakh per kilogram threshold. Weak international cues and persistent strength in the greenback triggered a sharp selloff across counters. This marks the first time in over ten months that silver has fallen to this territory, while gold also registered losses as domestic buyers remained cautious.

## Silver Plunges by ₹4,000 to Breach ₹2 Lakh Mark
According to data released by the All India Sarafa Association, silver dropped by ₹4,000 on Tuesday to settle at ₹1.98 lakh per kilogram. The sharp drop pulled the white metal to a fresh ten-month low, erasing recent recovery attempts. In the preceding session on Monday, silver had closed at ₹2.02 lakh per kilogram. Historical pricing records indicate that the last time silver traded near this band was on December 16, when rates stood at ₹1,98,500 per kilogram.

## Gold Softens by ₹500 Amid Subdued Buying
Following the broader weak sentiment across precious metals, gold of 99.9 per cent purity also recorded a decline of ₹500 to close at ₹1,45,800 per 10 grams in the capital. The yellow metal had concluded trading at ₹1,46,300 per 10 grams on Monday. Retail participants and local jewelers held back fresh orders, reflecting broader hesitation as international rate expectations continued to shift.

## Firm Dollar and Global Weakness Weaken Sentiment
Market analysts attributed the downward trajectory in domestic rates to international factors and currency dynamics. Jatin Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, pointed out that a persistently robust US dollar and relentless corrections across overseas bullion markets have exerted downward pressure on domestic gold prices. Trivedi noted that volatility is likely to persist in the near term, expecting domestic gold rates to fluctuate within a target band of ₹1.40 lakh to ₹1.44 lakh per 10 grams.

In international trade, spot gold witnessed a minor dip to trade around $4,011.44 per ounce. Silver faced even steeper downward momentum, tumbling by more than 1 per cent to hover at $53.41 per ounce.

## Silver Underperforms Gold as Industrial Demand Lags
Providing a sectoral assessment, Gaurav Garg, Head of Research at brokerage platform Lemon, highlighted that silver has continued to lag significantly behind gold. Garg noted that heavy selling pressure intensified once international silver fell below the critical benchmark of $54 per ounce. The metal is currently hovering near an eleven-month trough as market participants weigh subdued industrial off-take against macroeconomic uncertainties.

## Focus Shifts to Federal Reserve Rate Decision
Commodity market participants are closely tracking the upcoming monetary policy meeting of the US Federal Reserve scheduled for October 28. Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, observed that market participants are maintaining a watchful posture ahead of the policy outcome. The central bank's decision on the benchmark Federal Funds Rate, accompanied by commentary from Federal Reserve Chairman Kevin Warsh regarding the future path of interest rates, will play a decisive role in defining the subsequent trajectory for bullion prices worldwide.

## What this means for you
The steep decline in bullion prices offers immediate cost relief to retail buyers while warranting caution for short-term precious metal investors.

- **For Jewelry Buyers:** The drop of silver below the ₹2 lakh per kilogram mark makes silverware and jewelry significantly more affordable. Shoppers planning wedding or festive purchases can capitalize on rates that are at their lowest levels in ten months.
- **For Commodity Investors:** Investors who entered bullion positions near recent peaks may face temporary valuation declines. Long-term holders may choose to observe the market until selling pressure subsides below critical support levels.
- **Expected Price Range:** Analysts anticipate domestic gold prices could correct further into the ₹1.40 lakh to ₹1.44 lakh per 10 grams band. Prospective buyers can adopt a staggered accumulation approach rather than making lump-sum commitments.
- **Global Policy Implications:** The upcoming monetary policy statement will dictate whether precious metals recover or drop further. Market participants should monitor the outcome of the October 28 central bank meeting before initiating aggressive positions.

## Why this happened
The sharp correction in bullion prices is primarily driven by currency dynamics, softening industrial demand, and macro uncertainty ahead of key monetary policy decisions.

- **Strengthening Greenback:** A resilient US dollar has placed substantial downward pressure on dollar-denominated commodities. As the dollar strengthens, acquiring gold and silver becomes costlier for global buyers, prompting liquidations across exchanges.
- **Industrial Demand Concerns:** Unlike gold, silver relies heavily on manufacturing and industrial applications, where sentiment has softened recently. Once global silver breached its technical floor below $54 per ounce, stop-loss triggers accelerated selling toward an eleven-month low.
- **Pre-Fed Meeting Caution:** Investors are intentionally trimming exposure ahead of the US Federal Reserve's monetary policy review on October 28. Uncertainty regarding the future trajectory of the Federal Funds Rate and guidance from Chairman Kevin Warsh has kept bullion sentiment restrained.

## Questions & Answers

### 1. What is the latest price of silver in Delhi?
Silver fell by ₹4,000 on Tuesday to settle at ₹1.98 lakh per kilogram in the Delhi bullion market.

### 2. How much did gold prices fall in the latest session?
Gold of 99.9 per cent purity dropped by ₹500 to close at ₹1,45,800 per 10 grams.

### 3. When was silver last recorded at this price level?
This represents a ten-month low; silver previously traded near this level on December 16 at ₹1,98,500 per kilogram.

### 4. Where are gold and silver trading in international markets?
Spot gold traded around $4,011.44 per ounce, while international silver slipped over 1 per cent to $53.41 per ounce.

### 5. What price range do analysts forecast for domestic gold?
LKP Securities expects domestic gold prices to fluctuate within a range of ₹1.40 lakh to ₹1.44 lakh per 10 grams in the near term.

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