Silver loses 57% from its peak as October slump reaches ₹45,000 a kilogram
Silver has surrendered more than half of last year's gains, tumbling another ₹10,577 a kilogram on Friday to a day's low of ₹1,79,600 on the Multi Commodity Exchange's December contract — a level last seen in December, and a loss of nearly ₹45,000 a kilogram this month alone. From its record ₹4,20,048 a kilogram, the white metal has shed 57% of its value, unwinding a 170% rally in 2025.
Gold fell for a third straight session, dropping ₹4,347 per 10 grams to ₹1,38,249, its lowest since late March. October has now cost the yellow metal ₹10,787 per 10 grams, after a ₹5,400 decline in September, leaving it ₹42,321 below its peak of ₹1,80,779.
The trigger is monetary policy, not metals. US PCE inflation rose 0.5% month-on-month in September, the biggest increase since March, with the annual rate accelerating to 3.6% and core PCE at 3.1%. The Federal Reserve voted 10-2 on Wednesday to hold rates at 3.75%-4%, with two policymakers pushing for a 25-basis-point hike, and traders now price about a 75% chance of a December increase, according to the CME FedWatch Tool.
Higher rates make non-yielding assets less attractive, and the energy backdrop is reinforcing the case. Oil was heading for a fourth consecutive monthly gain after an attack on a tanker in the Strait of Hormuz underlined supply risks from the US-Israeli war on Iran. US GDP grew at an annualised 3.4% in the third quarter, above the 3.2% expected, on resilient consumer spending and strong AI-related investment. Japan's capital also reported October core inflation well above the Bank of Japan's 2% target.
For investors who bought silver at its peak, the correction is a reminder that the metal's safe-haven reputation holds only while rates are falling. With energy prices still climbing and central banks under pressure, the path back for precious metals runs through the inflation data.
