Silver Price Plummets as Gold and Silver Drop Amid US Rate Decision and Global Tensions Silver and gold prices experienced a sharp decline on Thursday, with silver losing over 5% and gold falling approximately 2.5%. On the MCX, silver prices dropped by Rs 12,000 per kg, while gold prices fell by Rs 4,500 per 10 grams. As of now, silver is trading at around Rs 2.35 lakh per kg, and gold has dipped below Rs 1.50 lakh per 10 grams. The crash coincided with a broader stock market downturn, intensifying the downward spiral for precious metals. The primary driver behind the price drop is the US Federal Reserve’s decision to maintain interest rates unchanged and signal no rate cuts in 2026. Federal Reserve Chairman Jerome Powell highlighted global economic challenges, citing international tensions as a key factor. This news sent shockwaves through global markets, leading to a sharp decline in both gold and silver prices. Investors interpreted the Fed’s stance as a sign of prolonged high rates, which reduces the appeal of non-yielding assets like precious metals. Silver, which had been on a relentless upward trajectory for two years, reached a record high of Rs 4.2 lakh per kg on 29 January 2026. However, the price has since slid, falling to Rs 2.25 lakh per kg by 2 February 2026 as investors began taking profits. The current price of Rs 2.35 lakh per kg marks a decline of Rs 1.85 lakh per kg from its peak, signaling the end of the previous rally. The situation is further complicated by geopolitical tensions, particularly the US-Iran conflict. Typically, global instability drives demand for gold and silver as safe-haven assets. Yet, this time, the opposite is occurring. The ongoing tensions have instead increased selling pressure, with investors shifting toward other assets or cash.#us_iran_conflict #mcx #jerome_powell #us_federal_reserve #global_economic_challenges
