Silver prices have extended their decline, with the white metal slipping below Rs 2 lakh per kg on the Multi Commodity Exchange (MCX) as weakening industrial
demand and elevated interest rates weigh on the market. On Friday, the domestic silver rate was trading near Rs 1,95,000 per kg, down nearly Rs 4,500 during the session. The latest correction has pushed silver to an 11-month low in both domestic and international markets. From its all-time high of Rs 4,20,048 per kg, recorded on the MCX on January 29, 2026, the metal has lost approximately 53.5 per cent of its value. The sharp decline follows warnings from market experts that silver could witness a substantial correction after its record-breaking rally. LiveMint Digital reported on January 4, 2026, that prices could peak in February and subsequently fall by around 60 per cent over the following 12 to 18 months. Despite the steep fall, some market analysts believe silver could recover by the end of 2026, provided interest-rate expectations, industrial consumption and global market conditions become more favourable. Why Is Silver Price Falling Today? Silver prices are facing pressure from concerns over sluggish industrial demand and the possibility of interest rates remaining elevated. Market experts believe that weaker demand from industrial sectors, coupled with higher borrowing costs, could weigh on the white metal. Expectations of a potential US Federal Reserve rate hike and the possibility of other central banks adopting a similar stance have added to these concerns. Several factors influence silver prices, including global bullion market trends, movements in the US dollar, interest-rate outlook, investor sentiment and industrial consumption. Unlike gold, silver serves both as an investment asset and an industrial commodity. It is widely used in electronics, solar panels and various manufacturing processes, making its price particularly sensitive to shifts in industrial activity and investment demand. Investors checking the silver rate today should also understand the difference between Multi Commodity Exchange (MCX) futures and physical silver prices. MCX futures represent the price of silver traded through a specific exchange contract, whereas rates offered by bullion dealers can vary depending on local market conditions, applicable charges and other pricing factors.
