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The crash in silver prices deepened further in Friday’s trade, with the December delivery contract on the Multi Commodity Exchange (MCX) plunging another ₹10,577 per kg. The contract broke below the ₹1.80 lakh mark to hit the day’s low of ₹1,79,600 per kg. The white metal was last seen trading around these levels in December. Friday’s losses widened its October decline to nearly ₹45,000 per kg, putting it on track for its biggest monthly fall of 2026. Silver, which enjoyed an uninterrupted bull run in 2025, has given up more than 50% of those gains as rising crude oil prices and persistent inflation concerns reinforced expectations of US interest rate hikes. Similarly, gold prices extended their decline for a third consecutive session in trade, falling another ₹4,347 per 10 grams to hit the day’s low of ₹1,38,249, their lowest level since late March. In October, prices have retreated by ₹10,787 per 10 grams, following a decline of ₹5,400 in September. From its record high of ₹4,20,048 per kg, silver has lost 57% of its value. The sharp correction follows a 170% surge in silver prices in 2025. Gold has also witnessed a steep decline, falling ₹42,321 per 10 grams from its record peak of ₹1,80,779. Gold is traditionally considered a hedge against inflation and a safe-haven asset during periods of geopolitical uncertainty. However, higher interest rates reduce its appeal as investors turn towards yield-bearing assets. The US Personal Consumption Expenditures (PCE) price index increased 0.5% month-on-month in September, marking its biggest rise since March, while annual inflation accelerated to 3.6%. Core PCE inflation also climbed to 3.1% year-on-year. Meanwhile, US GDP expanded at an annualised rate of 3.4% in the third quarter, exceeding expectations of 3.2%, supported by resilient consumer spending and strong AI-related investment. On Wednesday, the Federal Reserve voted 10-2 to keep interest rates unchanged at 3.75%-4%, with two policymakers dissenting in favour of a 25-basis-point hike. The US Federal Reserve and other major central banks are grappling with growing inflationary pressures as the war in the Middle East shows no signs of easing, keeping oil and gas prices elevated. Oil prices were on track for a fourth consecutive monthly gain as an attack on a tanker in the Strait of Hormuz highlighted continuing supply risks arising from the US-Israeli war on Iran. Higher energy prices strengthen expectations of a prolonged period of elevated interest rates, making non-yielding assets less attractive for safe-haven buyers. Traders are now pricing in about a 75% chance of a rate hike in December, according to the CME FedWatch Tool. Elsewhere, annual core inflation in Japan's capital rose well above the central bank's 2% target in October, data showed on Friday, highlighting mounting price pressures. Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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