Silver prices in India fell sharply on Thursday, extending recent corrections due to global market sensitivities, industrial demand fluctuations, and the anticipation of US Federal Reserve easing, highlighting the metal’s complex price drivers.
Silver prices fell sharply in India on Thursday, extending a recent correction after a strong rally in bullion. According to the report, silver futures on the Multi Commodity Exchange dropped 1% to Rs 2,33,100 per kilogram in early trade, while the All India Bullion Association said spot prices in New Delhi had already slipped by Rs 6,000 to Rs 2.40 lakh per kilogram on Thursday, August 13.
The retreat came as investors locked in gains after bullion rallied on hopes that US monetary policy could ease further. In the United States, July inflation data broadly matched expectations, keeping markets focused on the next batch of economic releases for clues about the Federal Reserve’s path. Silver was also weaker internationally, with COMEX futures quoted at $64.09 an ounce, down from the previous close of $64.63.
Analysts say silver remains unusually sensitive to both financial and industrial forces. Unlike gold, it has a major manufacturing role in electronics, solar equipment and other applications, which means its price reacts not only to investment flows but also to broader growth expectations. The Silver Institute has noted that India remains a major physical market for the metal, especially during festivals such as Diwali and Dhanteras, although price sensitivity and weaker resale liquidity can make demand more uneven than in gold.
That backdrop helps explain why recent moves have been so volatile. Vardhaman Capital said in its 2026-27 outlook that silver continues to face a mix of supply deficits, strong industrial demand and macroeconomic uncertainty, including expectations of Federal Reserve easing. The Silver Institute also said in a May 2026 newsletter that silver hit record highs in 2025, reaching $84 an ounce in December, after tight inventories and strong investor demand squeezed the market. In India, official bullion-rate documents and market reports show that prices can vary by city and by dealer, but the broader trend remains driven by global futures, import costs and domestic buying.
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