Silver slips below Rs 1.95 lakh a kg, down about 17% in a month; gold near Rs 1.43 lakh ahead of Fed decision

Gold is far below its high this year, when futures touched Rs 1,80,779 for 10 grams.

A month of falls

The slide in silver has been steeper than in gold. On 23 October silver was at Rs 1,96,050 a kilogram, down 2.16 per cent on the day. A week before that it had been Rs 2,11,800, and a month before that Rs 2,36,080. Gold on 23 October was Rs 1,43,130 for 10 grams, against Rs 1,48,270 a week earlier and Rs 1,52,090 a month earlier.

Over the same month, gold lost about 6 per cent and silver about 17 per cent. A year ago, on 23 October 2025, gold was Rs 1,24,530 and silver Rs 1,49,000, so gold is still about 15 per cent higher and silver about 32 per cent higher than at that time.

Earlier in October the rates were much higher. On 7 October gold was Rs 1,49,620 and silver Rs 2,25,160. On 12 October they were Rs 1,49,880 and Rs 2,23,920, on 15 October Rs 1,47,830 and Rs 2,10,820, and on 21 October Rs 1,46,570 and Rs 2,10,250. Silver fell below Rs 2 lakh for the first time in this stretch on 23 October, and on 22 October it had still been at Rs 2,00,380.

The most immediate reason given is caution before the US Federal Reserve announces its policy decision after its meeting, which began on Tuesday. Investors tend to reduce positions in gold and silver before such decisions, because a firmer stance on interest rates makes metals that pay no interest less attractive.

Oil is the other thread. Crude prices rose earlier in the month, which stoked worries about inflation, but they eased on Tuesday as renewed diplomatic efforts aimed to ease tension between the United States and Iran, although attacks on Saudi Arabia kept concerns about supply alive. In international markets, spot silver was around 53.67 dollars an ounce, and the Comex silver contract fell about 1.65 per cent to 53.45 dollars. Comex gold was near 4,038 dollars an ounce at the end of last week.

Silver tends to move more than gold because it is a smaller market and because it is used in industry, so its price reacts both to money flowing in and out of investment funds and to expectations about demand from factories.

Retail prices in shops include making charges and taxes, and differ from city to city, so the exchange rates are a guide and not the price paid at the counter. Buyers who had waited for a dip may now find the rates more attractive, but they should compare the final bill and not only the exchange rate.

A fall of this size can reverse quickly, and it can also continue. The Fed decision, the direction of oil and the dollar are the factors that are likely to decide the next move. Anyone who is buying for investment, and not for a wedding or a festival, should look at the price over a longer period and not at a single day.