Silver rises globally, but domestic prices fall ₹11,521 to ₹2.21 lakh

Silver’s international price rose 0.6% to $61.38 per ounce, even as domestic silver prices fell by ₹11,521 during the week to ₹2.21 lakh per kilogram.

Domestic commodity trading was not taking place on 2 October because of Gandhi Jayanti, and the India Bullion and Jewellers Association was also not releasing its gold and silver rates.

The result was a quiet domestic market, while international precious-metals trading continued to reflect changing expectations around US interest rates, bond yields and rising tensions in the Middle East.

Domestic silver price falls to ₹2.21 lakh

According to the India Bullion and Jewellers Association, the price of one kilogram of silver declined to ₹2.21 lakh.

Silver had been priced at ₹2.32 lakh per kilogram on 25 September, meaning the rate cited by the association was ₹11,521 lower than the level recorded the previous week.

The fall in silver came alongside a weekly decline in gold prices in the domestic market.

The price of 10 grams of 24-carat gold came down from ₹1.52 lakh to ₹1.48 lakh, according to IBJA data cited in the report.

The report described gold as ₹4,000 cheaper during the week, while its account of the price movement also stated that the value saw an increase of about ₹4,000.

The figures cited in the report put the current domestic gold rate at ₹1.48 lakh for 10 grams of 24-carat gold and the silver rate at ₹2.21 lakh per kilogram.

Because trading was not taking place in the domestic commodity market on 2 October, the rates were being discussed against the previous available levels rather than against fresh domestic transactions.

The absence of a new IBJA rate did not stop international markets from moving.

In Singapore, spot gold rose 0.3% in afternoon trading to $4,190.16 per ounce, while silver rose 0.6% to $61.38 per ounce.

Silver had gained 0.9% during the previous day, according to the international-market update cited in the report.

Platinum and palladium also recorded gains in international trading.

Gold may cross ₹1.80 lakh by Diwali

The immediate domestic focus is not limited to the week’s decline in gold and silver.

A forecast cited from Kedia Commodities says gold could move above ₹1,80,000 per 10 grams by Diwali or by the end of 2026.

The forecast was attributed to Ajay Kedia, president of Kedia Commodities.

That projection concerns gold, not the domestic silver rate of ₹2.21 lakh per kilogram or the international silver price of $61.38 per ounce.

The distinction matters because domestic prices have weakened over the week even while international gold and silver prices were showing gains in the latest available trading update.

The international rise in gold was described as modest, with spot gold up 0.3% in Singapore.

Silver’s movement was stronger than gold’s in that update, with the metal gaining 0.6% after a 0.9% rise during the previous day.

The market direction therefore remained mixed across time periods: domestic weekly prices were lower, while the latest international session showed gains in both gold and silver.

Why US rate expectations matter

One factor supporting international gold prices was a softer US bond-yield environment.

Officials of the US Federal Reserve indicated that they needed more time before taking the next decision on interest rates.

Federal Reserve Vice Chair Philip Jefferson said it could take more time to assess whether further rate increases would be needed.

The change in expectations reduced the possibility of an immediate rate increase in the view of market participants.

Traders were assigning a 26% probability to a rate increase in October, compared with 70% at the beginning of the week.

The lower expectation for a near-term rate increase formed part of the backdrop to the movement in international gold prices.

The US dollar spot index was down 0.1% against the dollar, according to the market update.

US Treasury yields also declined across the curve on Thursday.

The 10-year yield fell below its record level from 24 years earlier.

The report linked that decline to increased concern about France’s fiscal position.

That concern encouraged investors to move towards safer options, according to the report.

Gold generally faces pressure when yields are high because the metal does not pay interest.

The same relationship had contributed to gold’s 6% decline in September, according to the market explanation cited in the report.

With yields easing and expectations of an immediate rate increase declining, the pressure on gold from those factors became less intense in the latest international update.

Middle East tensions add to market uncertainty

The other major factor identified in the international update was the possibility of greater tension in the Middle East.

The expectation of rising tensions kept energy prices elevated.

There were also signs of a possible escalation in the conflict, which pushed oil prices higher.

The rise in oil prices was linked to a threat to the recovery of energy supplies from the region.

According to a US official, the Pentagon could send another aircraft carrier and 10,000 soldiers and marines to the Persian Gulf.

That possibility was cited in the same context as the signs of increasing Middle East tension and the movement in energy prices.

For precious-metals markets, the reported combination of softer yields and geopolitical uncertainty provided the setting for the latest international gains.

The available data do not show a new domestic silver rate for 2 October because the domestic market was closed and IBJA was not issuing rates.

They do show that silver had fallen from ₹2.32 lakh per kilogram on 25 September to ₹2.21 lakh per kilogram in the latest domestic weekly comparison.

Silver remains below its 2026 level

The weekly decline came despite silver having moved sharply during the year.

Silver was ₹2.30 lakh per kilogram on 31 December 2025 and was cited at ₹2.21 lakh per kilogram in the latest comparison.

On that basis, silver was ₹9,591 cheaper in 2026 so far, according to the report.

Gold, in contrast, was ₹14,939 more expensive during the same period.

Gold stood at ₹1.33 lakh for 10 grams on 31 December 2025 and had reached ₹1.48 lakh in the latest rate cited.

The report also recorded an all-time high of ₹1.76 lakh for gold on 29 January.

Silver reached an all-time high of ₹3.86 lakh per kilogram on the same date, according to the report.

Those highs show the extent of the price swings that have taken place even though the latest weekly comparison showed lower domestic rates.

The current silver price therefore remains below the all-time high cited for the metal, while the international market is recording a fresh rise in the latest available session.

For buyers and market watchers, the immediate picture is shaped by two separate signals.

The domestic market has reported a weekly fall in silver and gold, while international silver and gold prices have moved higher in the latest update.

The next domestic IBJA rates will be important for checking whether the international gains are reflected in local prices after trading resumes.