Silver $59.43 −3.10%Gold $4,078.70 −2.04%India ₹/kg ₹2,18,319 −3.10%Shanghai ¥/kg ¥14,890 +0.60%SGE premium +16.1% USD/INR ₹96.47 Gold/Silver 68.6 7 Oct 2026, 6:10 PM IST

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Why silver fell 9% in September 2026

Silver had its worst month since June in September 2026, falling from about $66 to $60 an ounce. Expectations of another US interest-rate rise and oil above $100 a barrel did most of the damage.

Published 2 min readSources

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How far prices fell

Price31 Aug 202630 Sep 2026Change
Silver, USD per ounce$66.22$60.10−9.3%
Silver in India, ₹ per kg₹2,40,536₹2,19,830−8.6%
Gold, USD per ounce$4,481.50$4,186.70−6.6%
24K gold in India, ₹ per 10 g₹1,62,783₹1,53,143−5.9%
US dollar, ₹₹95.38₹96.05Rupee 0.7% weaker

COMEX front-month closes and USD/INR from Yahoo Finance. India figures are SilverInfo's benchmark: the international price in rupees with 15% import duty and 3% GST. Today silver is $59.43 an ounce and ₹2,18,319 per kg.

Why silver fell

1. Bets on another US rate rise

Rising Treasury yields and expectations of another Federal Reserve increase weighed on precious metals at the end of September; Yahoo Finance reported a roughly 70% market-implied chance of a hike after the October meeting. Silver and gold pay no interest, so higher rates make holding them less attractive.

2. Oil above $100

Oil climbed back above $100 a barrel in late September amid the conflict involving Iran. Expensive oil raises inflation, which pushes central banks towards tighter policy, a headwind for silver.

3. Silver's higher volatility

Silver fell further than gold (9.3% against 6.6%), as it usually does when sentiment turns. It peaked at $67.94 on 9 September and closed the month at its low.

What it means in India

The benchmark fell less than the world price because the rupee weakened slightly, from ₹95.38 to ₹96.05 per dollar. Retail quotes stayed higher: on 1 October several big cities quoted silver at about ₹2.40 lakh per kg, a sign of dealer premiums as festive buying starts. With Dhanteras on 6 November, compare any quote with the benchmark before you buy.

Diwali 2026 silver rate and buying guide · Silver coin prices today

What comes next

The Federal Reserve's late-October decision is the next big event, followed by festival demand in India. Bank forecasts are split: J.P. Morgan sees about $63 in the last quarter of 2026, UBS $70 by December. Read the bank forecasts.

Frequently asked questions

Why is the silver price falling?

In September 2026 the main reasons were expectations of higher US interest rates, which make metals that pay no interest less attractive, and oil above $100, which feeds inflation fears and pushes central banks towards tighter policy. Silver also tends to fall further than gold when sentiment turns.

Will silver fall further?

Nobody can say. J.P. Morgan expects about $63 in the last quarter of 2026, close to today's level, while UBS sees $70 by December. See bank forecasts and the October outlook.

Why is the silver rate in my city higher than this benchmark?

Dealers and jewellers add their own premium, and premiums usually rise as festive demand builds. On 1 October several cities quoted about ₹2.40 lakh per kg, while the international-based benchmark was lower. Compare quotes with today's rate.

Sources

Rules and figures checked on 29 September 2026. Live prices update on this page automatically.