Silver Price in India Drops ₹1.85 Lakh from Peak Amid Easing US-Iran War Tensions

Silver Prices in India Witness Sharp Correction

Silver prices in India have fallen by ₹1,85,000 from their record peak, dropping to ₹2,34,700 levels. This represents a decline of 44% from the all-time high of ₹4,20,048 touched in January 2026. The sharp selloff has placed silver firmly in bear territory.

Global Factors Contribute to Decline

The decline in silver prices is attributed to a combination of global factors, including a strengthening US dollar, elevated crude oil prices, persistent inflation concerns, and expectations that the US Federal Reserve may keep interest rates higher for longer due to the ongoing US-Iran conflict.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Market Expectations Shift

According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, the correction in silver is closely tied to shifting macroeconomic expectations. The decline is largely driven by rising inflation risks, which are altering expectations around the rate cut cycle, with markets now pricing in a more prolonged higher interest rate environment.

Silver's Volatility

A recent World Gold Council report highlighted that while silver outperformed gold briefly in late 2025, it remains far more volatile due to its heavy reliance on industrial demand. Unlike gold, which acts as a safe haven, silver behaves more like a cyclical asset.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Recovery Signs

Silver has shown some signs of recovery, tracking improved sentiment as investors await clarity on de-escalation efforts in the Middle East. Gold and silver prices edged higher on Thursday, extending gains for a third straight session, as investors awaited clarity on efforts to de-escalate the conflict in the Middle East.

Investment Outlook

Experts suggest that while the recent rebound offers some relief, the outlook for silver remains cautious in the near term. Hareesh V, Head of Commodity Research at Geojit Investments Limited, noted that the recent uptick in prices has been supported by softer crude oil prices and easing inflation concerns, which have helped reduce pressure on global interest rates.

Recommendations

For investors, the takeaway is nuanced. While the sharp correction has made valuations more attractive, silver's inherent volatility and sensitivity to global economic conditions mean that any recovery may be gradual and capped in the near term. In essence, the recent fall has opened a window for selective buying—but timing and risk management will be critical in navigating silver's next move.