Silver Prices Plunge Below Lifetime High as Interest Rate Fears Mount

Gold and silver prices plummeted on Monday, extending their recent weakness due to global cues and growing expectations of higher interest rates in the US. On the Multi Commodity Exchange (MCX), gold futures for October 5 expiry opened at Rs 1,52,225 per 10 grams, down Rs 542 from the previous close of Rs 1,52,767 on Friday.

The decline has taken silver significantly below its lifetime high of Rs 4,20,048 per kg, recorded in January. At Monday's opening price, silver was Rs 1,83,625 per kg below its record level.

Experts attribute the fall to stronger-than-expected US jobs data, which has increased expectations that the US Federal Reserve could raise interest rates this month. Higher interest rates and rising bond yields generally put pressure on non-yielding assets such as gold and silver.

Despite the recent correction, gold and silver remain highly sensitive to geopolitical developments, currency movements, interest-rate expectations, and global inflation trends. Market participants will closely track upcoming US economic data for further direction.