# Precious Metals Plunge: Silver Drops Below 2 Lakh Mark as Gold Corrects by 22,000 in Two Months

> Gold and silver futures extended their steep downward streak in domestic markets. Silver dropped below ₹2 lakh per kg while gold slipped by ₹22,000 per 10g over the past two months.

**Type:** article · **Category:** Money · **Published:** 2026-10-24 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/sone-aur-chandi-mein-do-mahine-ki-sabse-badi-giravat-chandi-2-lakh-ke-neeche-fissli-sona-22-hazaar-sasta-51401 · **Language:** English
**Tags:** Gold Price, Silver Price, MCX Gold, Precious Metals Drop, Crude Oil Impact, Inflation

Gold and silver prices continue their sharp downward trajectory on domestic commodity derivatives markets, reversing the surge that had previously pushed both precious metals to record high levels. In trading on 23 October 2026, heavy selling pressure pulled silver futures down to around ₹1.94 lakh per kilogram. Concurrently, gold prices experienced a notable drop, approaching ₹1.42 lakh per 10 grams. This marks the first instance in 2026 that silver has traded below the psychological benchmark of ₹2 lakh per kilogram, a level last breached on the downside in December 2025.

## Detailed Extent of the Two-Month Price Decline
Over the past two months, precious metals have witnessed a substantial price correction across domestic markets. Between late August and late October, silver crashed by approximately ₹54,000 per kilogram, while gold fell by roughly ₹22,000 per 10 grams over the same 60-day period. On 24 August, gold was quoted above ₹1.64 lakh per 10 grams before declining to an MCX session low of ₹1,41,935 per 10 grams on 23 October. Similarly, silver stood above ₹2.48 lakh per kilogram on 24 August before descending to around ₹1.94 lakh per kilogram by 23 October.

## Retail Market Variation Versus Futures Benchmarks
During early trading on Friday, gold futures on the MCX dropped to around ₹1,41,935 per 10 grams. Market participants should note that commodity futures reflect wholesale benchmark rates. Physical retail prices for 24-karat gold across various cities differ from futures values due to local taxation, state duties, transport costs, and jeweler making charges. Potential buyers are advised to confirm real-time local spot rates in their respective cities for 24-karat, 22-karat, and 18-karat purity before making purchase decisions.

## Global Oil Surge and Inflationary Factors Driving the Slump
Weakness in international markets continues to weigh heavily on domestic bullion values. Escalating geopolitical tensions in West Asia have triggered a sharp rally in global crude oil prices. American WTI crude surpassed $100 per barrel, while international benchmark Brent crude hovered near $114 per barrel. Elevated energy costs significantly heighten global inflationary concerns, which in turn reinforces expectations that the US Federal Reserve may keep benchmark interest rates higher for longer or introduce further rate hikes.

## Impact of US Dollar Strength and Yield Dynamics
In a high interest rate environment, non-yielding assets such as gold and silver lose relative appeal compared to interest-bearing investments like US Treasuries and the US dollar. As bond yields rise and the dollar index gains strength, institutional capital shifts away from bullion, reducing global demand and keeping downward pressure on gold and silver prices.

## Future Outlook for Bullion Buyers and Investors
The forward trajectory for precious metal prices will largely depend on international market trends, crude oil movements, US dollar fluctuations, and upcoming monetary policy decisions by the US Federal Reserve. Despite the steep decline seen over recent weeks, analysts note that prices could either stabilize or experience further shifts. Retail buyers and long-term investors are encouraged to evaluate their financial goals and current spot market trends carefully before making fresh investments or purchase commitments.

## What this means for you
The ongoing correction in precious metal prices directly affects retail buyers, jewellers, and financial investors across the market.

- **Across India:** Consumers preparing for upcoming festive and wedding seasons stand to benefit from relatively lower acquisition costs for gold and silver jewelry. Reduced base metal prices help lower overall jewelry budgets and total expenditure.
- **For Investors:** Portfolio values for holders of Gold ETFs and sovereign gold instruments may see temporary drawdowns. Long-term investors, however, may view lower price tiers as potential dollar-cost averaging entry points.
- **For Commodity Traders:** Traders active on derivatives exchanges must navigate elevated market volatility and downside momentum. Tight risk management and stop-loss mechanisms remain essential.
- **For Gold Loan Borrowers:** Pledgers seeking loan-to-value refinancing may face lower borrowing limits against pledged gold. Lenders could request margin top-ups if collateral valuations decline significantly.

## Why this happened
The recent tumble in precious metal values stems from a combination of global macroeconomic dynamics and geopolitical developments.

- **Crude Oil Price Surge:** Escalating tensions in West Asia pushed US WTI crude past $100 per barrel and Brent crude near $114 per barrel, fanning global inflation fears.
- **Persistently High Interest Rates:** Elevated energy costs increase expectations that the US Federal Reserve will maintain high benchmark interest rates to curb inflation.
- **Shift Toward Yield-Bearing Assets:** Higher interest rates enhance the appeal of US Treasuries and the US dollar, causing institutional investors to reduce exposure to non-yielding bullion.

## Questions & Answers

### 1. What was the silver price recorded on 23 October 2026?
On 23 October 2026, silver futures fell to around ₹1.94 lakh per kilogram on the MCX.

### 2. What was the futures rate for 24-karat gold?
24-karat gold futures on the MCX slid to approximately ₹1,41,935 per 10 grams.

### 3. How much have gold and silver prices fallen over the past two months?
Over the past two months, silver dropped by about ₹54,000 per kg and gold declined by around ₹22,000 per 10 grams.

### 4. Why are gold and silver prices falling sharply?
Surging crude oil prices due to West Asia conflicts have raised inflation fears, strengthening expectations of high US interest rates and driving investors toward the US dollar over bullion.

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