Silver prices fall below Rs 2 lakh/kg, down 55% from January peak

Silver prices on MCX fell below Rs 2 lakh per kg, dropping nearly 55% from January's record high, driven by a stronger dollar, elevated bond yields, and expectations of hawkish US Federal Reserve policy. The sharp two-day plunge of Rs 17,000 included a 3.5% Friday decline to Rs 1,92,800 per kg. Analysts cite profit-booking, rising inflation concerns, and higher-for-longer US interest rates, while easing domestic supply constraints and narrowing premiums also contributed to the correction. India issued permits for 6,500 metric tonnes of silver imports over six months to meet festive demand, though some dealers say this exceeds likely requirements. Experts expect continued volatility, recommending staggered buying for long-term investors amid support from solar, EV, and electronics demand.