Silver and Gold Prices Plummet to Near 11-Month Lows

Silver prices plummeted by Rs 8,300 on Friday, settling at Rs 1.90 lakh per kilogram. This marks the lowest level for the white metal in nearly 11 months, reflecting a broad sell-off in precious metals. Gold of 99.9 per cent purity also saw a significant decrease of Rs 1,300, bringing its price to Rs 1.45 lakh per 10 grams.

Globally, spot gold fell below the $4,000 per ounce mark, while silver dropped to $50.12 per ounce. Analysts attribute this decline to several factors, including elevated oil prices, stronger-than-expected U.S. GDP growth, and the prospect of further Federal Reserve rate hikes. Concerns over the sustainability of AI-related investments and a sharp selloff in technology stocks also contributed to investors liquidating precious metals positions.

Both gold and silver are now heading for substantial monthly declines. Market participants are favoring U.S. Treasuries as a safe-haven asset, which has limited inflows into non-yielding metals like gold and silver. The broader deleveraging across financial markets has outweighed any potential support from softer bond yields or a weaker dollar.