Silver Price Crash: Gold and silver prices have been fluctuating sharply over the past few days. Consequently, the price of silver has fallen by ₹20,000 per kilogram today. 

Silver prices fell by Rs 20,000 in one stroke, know the latest price in your city.

Silver Price Crash: Silver prices saw a significant drop today, Thursday, February 5th. As of 9:36 am IST on the MCX (Multi Commodity Exchange), silver prices were trading at ₹246,257 per kilogram, down 8.4% from its previous close. Prior to this significant drop, silver prices had opened at ₹252,719.

In the international market, silver was trading at $81 per ounce on COMEX today, down 3.74% from its previous close. However, before the decline, silver prices had already surged by nearly 25%. Similarly, the price of silver in the retail market fell by Rs 20,000 per kilogram today. 

The price had risen a day earlier.

Silver prices in India also saw a sharp rise on Wednesday, reaching levels of ₹320 per gram and ₹320,000 per kilogram. Silver prices had surpassed ₹4 lakh in January, but have since fallen sharply.

Following Wednesday's surge, the price of silver has fallen by ₹20,000 per kilogram, bringing its price to ₹300,000 today. Silver is currently selling for ₹300 per gram. In major cities like Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad, and Jaipur, the price of 1 gram of silver is ₹3,000, 100 grams of silver is ₹3,000, and 1 kilogram of silver is ₹300,000.

Why did the price fall?

In fact, tensions between the US military and Iran in the Arabian Sea have boosted safe-haven demand, but the market is currently awaiting a new round of nuclear talks scheduled for Friday. Furthermore, silver and other precious metal prices are reacting negatively to the rise in the US dollar. The US dollar index is now trading near the 98 mark, having fallen to a four-year low in late January.

There is an inverse relationship between the dollar index and precious metals like gold and silver. When the dollar strengthens, their prices fall because gold and silver are priced in dollars. Therefore, when the dollar strengthens, it becomes more expensive for buyers using other currencies, such as the rupee, to purchase gold and silver. This reduces global demand and leads to a decline in prices.

Additionally, when the dollar strengthens, investors prefer to invest in dollars rather than non-interest-bearing assets like silver. Silver is a non-interest-bearing asset because simply holding it doesn't generate any additional money, interest, or dividends.