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Silver Plunges ₹2,000/kg on MCX: What Should Investors Do Now?
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CNBC TV18•29-09-2026, 10:13
Silver Plunges ₹2,000/kg on MCX: What Should Investors Do Now?
- •MCX December silver contract dropped 0.93% to ₹2.25 lakh per kg, a ₹2,064 per kg fall from the previous close.
- •The decline follows a sharp sell-off on Monday, with silver prices in the national capital falling ₹5,000 to ₹2.32 lakh per kg.
- •International silver prices dropped 4.6% to $61.34 per ounce due to a stronger US dollar and rising US yields.
- •Experts attribute the pressure on precious metals to higher global yields, a stronger dollar, and increased probability of another US Federal Reserve rate hike.
- •While near-term volatility is expected, experts remain positive on the medium- to long-term outlook, advising long-term investors to consider staggered buying and leveraged traders to reduce exposure.
Key Questions Answered
Silver and gold prices declined due to a stronger US dollar, rising US Treasury yields, and higher crude prices. These macroeconomic factors have fueled market expectations of another US Federal Reserve rate hike in December.
On the MCX, the December silver contract traded down 0.93% at ₹2.25 lakh per kg, dropping ₹2,064 from the previous close. In New Delhi, local silver prices fell by ₹5,000 to reach ₹2.32 lakh per kg inclusive of taxes.
Experts advise long-term investors to exercise patience and practice staggered buying rather than trying to time the market bottom. Leveraged traders are specifically recommended to reduce their exposure and implement strict stop-losses to manage volatility.
