India Silver Price Crashes 7.8% Amid Global Weakness and Strong Dollar
The silver price in India has been on a downward trend since September, with prices falling from ₹2.55 lakh/kg to ₹2.35 lakh/kg on October 4. This represents a decline of 7.8% from the monthly high.
The drop in silver prices can be attributed to weaker global prices, a stronger US dollar, and profit-taking by investors. The Federal Reserve's interest-rate outlook remains a major driver for gold prices, with recent US economic data producing mixed signals. September nonfarm payrolls increased by only 29,000, below economists' expectations, while unemployment rose to 4.2%.
The weak jobs data reduced expectations of an October rate hike, but the gold market remains sensitive to broader inflation and interest-rate outlook. Stronger inflation concerns and elevated oil prices had earlier contributed to a sharp gold sell-off. Silver rates in India may vary by city, dealer, and timing, with final prices differing due to taxes, premiums, making charges, and other applicable charges.