Silver price crashes 5% on MCX after hot US inflation revives Fed hike bets
Representative image: kevinp133 / Pixabay
MCX silver futures fell as much as 5.1% to Rs 2,08,055 a kg on October 14, 2026 after hotter US inflation lifted Fed rate-hike bets; metals steadied on October 15.
What Happened
Silver prices in India crashed on Wednesday, October 14, 2026, after data showed US inflation running hotter than expected. On the Multi Commodity Exchange (MCX), the December silver futures contract fell by as much as Rs 11,162, or 5.1 per cent, to Rs 2,08,055 a kilogram during the evening session. The December gold contract dropped Rs 2,823, or 1.9 per cent, to Rs 1,45,627 per 10 grams. Traders blamed a rise in US consumer prices to 3.7 per cent a year in September, which revived bets that the US Federal Reserve could raise interest rates at its meeting later this month. On Thursday, October 15, prices steadied, with rate trackers reporting MCX gold about 1 per cent higher in the morning.
Key Facts
- MCX silver (December contract): down as much as Rs 11,162 (5.1%) to Rs 2,08,055 per kg on October 14, 2026.
- MCX gold (December contract): down Rs 2,823 (1.9%) to Rs 1,45,627 per 10 grams.
- Trigger: US consumer prices rose 3.7% year on year in September, above forecasts.
- Market reading: higher chances of a US rate hike, a stronger dollar and higher bond yields.
- Global spot silver fell sharply too, losing more than 6% at one point on October 14.
- On October 15, prices steadied; MCX gold was about 1% higher in early trade.
- Retail rates differ between cities and sellers because of taxes and making charges.
Why It Matters
Gold and silver pay no interest, so they become less attractive when interest rates are expected to rise. When US inflation surprises on the upside, investors start to price in tighter policy from the Federal Reserve, the dollar firms and bond yields climb. That combination tends to pull money out of precious metals, and on October 14 silver fell much further than gold.
For Indian buyers, the timing is important. The festive and wedding season is under way, with Dhanteras and Diwali approaching, when households traditionally buy gold and silver. A sharp fall can be a chance to buy at lower prices, but it also shows how quickly prices can swing. Some market experts quoted after the fall advised buying in stages on dips rather than all at once, given the volatility. Retail prices also include goods and services tax and making charges, so the fall in futures prices does not pass to shop counters one for one.
The move came during a nervous week across markets. The same US inflation data hit technology shares and pushed Asian stock markets lower, as investors reassessed how long interest rates will stay high.
| Contract (MCX, December) | Move on October 14 | Low level |
|---|---|---|
| Silver | -Rs 11,162 (-5.1%) | Rs 2,08,055 per kg |
| Gold | -Rs 2,823 (-1.9%) | Rs 1,45,627 per 10 g |
Impact
Short-term: Expect continued swings in gold and silver until the Federal Reserve's decision later this month. Any further US data pointing to sticky inflation could push metals lower; signs of cooling could bring a rebound.
Long-term: The direction of metal prices over the coming months will depend on more than one inflation report, including how far the Federal Reserve actually moves rates. Investors should judge precious metals as part of a balanced portfolio rather than on single-day moves.
Who is affected: Jewellery buyers ahead of Dhanteras and Diwali; investors in silver and gold exchange-traded funds; commodity traders on MCX; and jewellers managing stock during a peak season.
Key Takeaway
Silver futures on MCX crashed about 5 per cent on October 14, 2026 as hot US inflation revived Fed rate-hike bets, before prices steadied the next day.
Questions and Answers
Why did the silver price fall today?
MCX silver futures fell as much as 5.1 per cent on October 14, 2026 after US consumer prices rose 3.7 per cent in September, more than expected. That raised the chance of a US interest rate hike, lifted the dollar and bond yields, and hurt metals that pay no interest.
How much did silver fall on MCX?
The December silver contract dropped by up to Rs 11,162 to Rs 2,08,055 per kilogram during the session on October 14.
Did gold prices also fall?
Yes. MCX gold for December fell Rs 2,823, or 1.9 per cent, to Rs 1,45,627 per 10 grams on October 14, before steadying on October 15.
Is this a good time to buy gold or silver?
Prices are volatile. Some market experts suggested buying in stages on dips rather than in one go. Check final retail rates, which include GST and making charges, before buying.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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Reported, fact-checked and published by the Peepals Global Editorial Team.
