Silver Plunges Over 16,000 Rupees in Four Days as Gold Falters

Indian precious metals markets have witnessed a significant correction over the past week, with silver bearing the brunt of selling pressure. In a compressed four-day period, silver prices have tumbled by more than 16,000 rupees, marking a steep decline ahead of the festive season when demand for gold and silver traditionally peaks.

Futures trading data shows silver contracts have retreated from their recent highs to settle near the 2.24 lakh rupees mark per kilogram. The sharp pullback comes as investors reassess their positions in the commodity markets, unwinding bullish bets that had driven prices higher earlier.

Gold has also experienced weakness during the period, though silver has borne a disproportionate share of the selling. The timing of the decline is noteworthy, as Dhanteras and Diwali typically prompt increased retail buying of precious metals, particularly among Indian households observing traditional gift-giving customs during the festival season.

Market analysts attribute the decline to a combination of profit-taking and shifting investor sentiment. The correction has intensified scrutiny of price trends ahead of the festive shopping season, with traders monitoring whether the decline will attract fresh buying interest from retail consumers and jewelers looking to stock inventory for the upcoming celebrations.