Silver experienced its steepest monthly fall of 2026, with prices plunging 20% in October as reported by LiveMint. The December delivery contract on MCX fell 20% during the month, with MCX futures trading around ₹1,81,611-₹1,82,701 per kg on Monday, November 2nd. This dramatic decline represents a 50% correction from silver's record high, marking the end of an uninterrupted rally that had witnessed a 170% surge during 2025. The white metal is now trading at levels last seen in December, with current quotes at ₹1,81,611-₹1,82,701 per kg. In dollar terms, silver is nearly 50% below its peak, while on a calendar-year basis, silver is down about 19%.
Gold prices extended their decline for the third consecutive trading session on Friday, falling another Rs 4,347 per 10 grams and touching an intraday low of Rs 1,38,249, according to Dalal Street Investment Journal. During October, gold prices have declined by Rs 10,787 per 10 grams, following a fall of Rs 5,400 in September. The metal is now trading at Rs 1,38,481 per 10 grams, representing a significant retreat from its record peak of Rs 1,80,779 per 10 grams, a decline of Rs 42,321 from its highest point. However, as per The Financial Express, gold has still returned about 16.6% over the past year, with buyers who purchased a year ago remaining in positive territory. On November 2, MCX spot gold trades around ₹1,37,330 per 10 grams, which is 22% below the peak or nearly Rs 38,976 lower. In October, gold futures declined around 7%, with December gold futures trading around ₹1,39,065-₹1,39,179 per 10 grams on Monday, gaining 0.23%-0.42% from the previous close.
The sharp correction in precious metals has created potential opportunities for festive season purchases, with MCX gold and silver futures rebounding on Monday, November 2nd as global bullion markets stabilised ahead of Dhanteras and Diwali. With 24-carat gold trading around ₹1.38 lakh-₹1.40 lakh per 10 grams and silver near ₹1,98,000-₹2 lakh per kg, the lower prices could benefit consumers planning purchases. However, experts caution against mistaking the correction for a confirmed market bottom. GIFT Nifty points to a gap-up start for India after the Nifty reclaimed the 23,000 mark last week, according to Moneycontrol reports, with the broader market expected to outperform. As per LiveMint, experts recommend staggered buying over the coming weeks or months instead of deploying the entire investment allocation at current levels, with silver's greater volatility warrants a more measured allocation.
Wall Street experienced significant volatility on Friday as the Nasdaq suffered its biggest one-day percentage drop since June, according to reports from Moneycontrol. The decline was primarily driven by disappointing results from major technology companies, with Intel and Amazon reporting disappointing earnings that amplified investor concerns about massive AI-related spending. Month-end profit taking and caution ahead of the US midterm elections added additional pressure to the technology sector. The tech rout has created a risk-off move in equities that has particularly impacted precious metals markets.
The precious metals correction is primarily driven by persistent inflationary pressures in the U.S., with the U.S. Personal Consumption Expenditures (PCE) Price Index increasing 0.5% month-on-month in September, marking its biggest monthly rise since March. Annual inflation accelerated to 3.6%, while core PCE inflation climbed to 3.1% year-on-year. The U.S. Federal Reserve held rates in the 3.75%-4% range in October, but two members voted for a rate hike, while markets have begun pricing in the possibility of another increase in December. According to LiveMint, Gaurav Arora, Head of Research at SAHI, said expectations of higher US interest rates have added pressure on gold, with higher interest rates typically weighing on gold because the precious metal does not generate interest income. The US 10-year Treasury yield is just below 5% after touching 5.31% in early October, while the 30-year yield hit a high of 5.67% in the same month. As per The Financial Express, the US 10-year Treasury yield is just below 5% after touching 5.31% in early October, while the 30-year yield hit a high of 5.67% in the same month.
Despite the precious metals selloff, Vandana Bharti, Head of Commodity Research at SMC Global Securities, believes sharp corrections in precious metals can create opportunities for long-term accumulators. She pointed to previous episodes when liquidity-driven sell-offs were followed by strong physical demand, citing how gold rose from below $40 an ounce in 1970 to nearly $850 by January 1980 during the 1970s, and how gold initially fell to around $700 an ounce amid forced liquidations during the 2008 financial crisis, before rallying to $1,917 by August 2011. Bharti expects domestic gold prices could move towards ₹1.65 lakh-₹1.80 lakh per 10 grams by 2027, supported by central-bank buying, currency movements and gold's role as an inflation hedge. However, Kaveri More, Commodity Technical Analyst at Choice Broking, cautioned that the correction should not be mistaken for a confirmed market bottom, recommending staggered buying over the coming weeks or months instead of deploying the entire investment allocation at current levels. For silver, ₹1,78,800 per kg is the immediate support level, while ₹1,38,250 per 10 grams emerges as an immediate support level for gold.
