Silver prices have crashed as much as 53% from their all-time high of $121.62 per ounce recorded in January 2026, hitting a seven-month low as expectations of US Fed rate cuts fade and bond yields rise. According to The Financial Express, silver was quoted near the $57/oz mark, down more than 23% on a calendar year basis, with the metal falling to its lowest level since November 2025, trading near $56/oz on Wednesday. The precious metal had slumped 9.1% to $56.41 on Wednesday, its lowest level since November 2025, before recovering to close at $57.71. The metal is now trading at less than half of its all-time high, representing a nearly 12% drop since the Fed meeting last week and six consecutive declines in the past seven sessions. This represents a significant decline from the metal's all-time high of $121.65 reached in January 2026, which capped a 148% rally over the previous year.
The biggest trigger behind silver's slide has been growing expectations of higher US interest rates. As reported by Livemint, market participants are currently pricing in three Fed rate hikes in 2026, with CME FedWatch data indicating a roughly 67% probability of a rate increase in September. US Fed funds futures indicate a 76% probability of a rate hike in September, with gold futures for August 2026 deliveries trading 2.3% lower at $4,052.5 per ounce. The US dollar index rose to around 101.35, its highest level since May 2025, making precious metals more expensive for buyers using other currencies. Persistent inflationary pressures, exacerbated by the US-Iran war, have reinforced expectations of tighter monetary policy. Higher yields also tend to strengthen the US dollar, which can further weigh on precious metals by making them more expensive for buyers using other currencies, leading investors to shift funds from gold and silver into interest-bearing assets.
Silver rates in India have experienced a dramatic crash, with 1 kg silver dropping by ₹5,000 to ₹2.45 lakh across major cities. According to Goodreturns, MCX silver collapsed by over 3% to trade below ₹2.27 lakh per kg, while spot silver crashed by nearly 5% to trade around $62 per ounce. 1 kg silver is now below ₹2.50 lakh across majority of cities in India, with 100 grams and 10 grams silver dipping by ₹500 and ₹50 to ₹24,500 and ₹2,450 respectively. Pinky Yadav from Choice Broking explained that bullion prices remained under pressure as expectations of further Federal Reserve interest rate hikes boosted the U.S. dollar, reducing the appeal of non-yielding assets such as gold and silver. The dollar hovered near a 13-month high, supported by optimism surrounding initial U.S.-Iran peace talks, political uncertainty in the UK, and continued weakness in the Japanese yen.
Silver futures declined to ₹2.22 lakh per kg on Monday, falling ₹746 or 0.33% as participants reduced their bets on the Multi Commodity Exchange. According to The Hindu BusinessLine, silver contracts for September delivery declined by ₹746, or 0.33 per cent, to ₹2,22,726 per kg in a business turnover of 1,988 lots. Globally, the white metal was trading 1.04 per cent higher at $58.53 per ounce in New York, showing mixed signals across different markets. Analysts said a sell-off by participants mainly weighed on silver prices, indicating continued pressure from reduced speculative interest in the precious metal.
Despite the sharp decline, analysts are advising caution on fresh buying. According to The Financial Express, Hareesh V, Head of Commodity Research at Geojit Investments, noted that fresh buying for the white metal should be approached cautiously. "Prices remain vulnerable to further downside, especially when compared to historical averages, indicating scope for additional correction. Investors are advised to wait for more attractive entry points rather than rushing in, as near-term volatility and profit-booking pressures could continue to weigh on prices," the Geojit analyst added. Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that prices are likely to fall further. "Over the next one to two months, prices can fall further as the Fed stays hawkish. The level to watch is $48 — silver's multi-decade breakout zone, where a 45-year-old ceiling was finally cleared last year," he said.
