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Silver prices witnessed a decline on Monday, May 18, bringing slight relief to buyers after recent sharp movements in precious metal markets. In the domestic bullion market, silver prices slipped to ₹2,79,900 per kilogram, taking the rate for 10 grams of silver to around ₹2,799.

The fall in silver prices comes alongside weakness in gold rates and growing uncertainty in global commodity markets. Traders say a stronger US dollar, rising geopolitical tensions in West Asia, and expectations of higher global interest rates are influencing investor sentiment across bullion markets.

People planning to buy silver jewellery, silver bars, coins, or investment-grade silver are closely tracking these developments as volatility in precious metal prices continues to remain high.

Silver and Gold Prices Decline on MCX

On the Multi Commodity Exchange of India (MCX), both gold and silver recorded losses during Monday’s trading session.

• Gold prices fell nearly 0.41 percent to around ₹1,57,900 per 10 grams
• Silver prices declined about 1.16 percent to approximately ₹2,68,724 per kilogram

Analysts believe the correction was influenced by pressure in international bullion markets, where precious metals remained volatile amid global economic uncertainty.

International spot gold reportedly traded near $4,540 per ounce, while US gold futures also moved lower.

Why Precious Metal Prices Are Under Pressure

Experts say investors are becoming increasingly cautious because of rising geopolitical tensions and fears of global inflation.

Recent reports of drone attacks near strategic energy infrastructure in West Asia have heightened concerns in international markets. Tensions involving countries in the region, including Iran and Gulf nations, are creating uncertainty regarding crude oil supply routes and energy prices.

Higher crude oil prices could push inflation upward globally. In such situations, central banks may choose to keep interest rates elevated or increase them further.

When interest rates rise, non-interest-bearing assets like gold and silver often become less attractive to investors. This is one of the key reasons behind the recent weakness in bullion prices.

Market participants are also closely watching signals from the Federal Reserve System regarding future interest rate decisions.

Government Tightens Import Rules on Gold and Silver

The Indian government has also increased pressure on precious metal imports in recent weeks.

Import duty on gold and silver has reportedly been increased from 6 percent to 15 percent. The move is aimed at controlling import bills and protecting the country’s foreign exchange reserves.

In addition, the government has tightened import regulations for certain silver categories.

Under the revised policy:

• 99.9 percent purity silver bars
• Certain semi-processed silver products

have been shifted from the “free” import category to the “restricted” category.

This means importers will now need special approval before bringing these silver products into India.

Analysts say these restrictions could eventually impact domestic silver supply and increase local market premiums if import volumes slow down significantly.

Latest Silver Rates in Major Indian Cities

Silver prices remained mostly uniform across several northern and western Indian cities on May 18.

Here are the latest city-wise silver rates:

City	Silver Price Per Kilogram
Delhi	₹2,79,900
Mumbai	₹2,79,900
Ahmedabad	₹2,79,900
Kolkata	₹2,79,900
Jaipur	₹2,79,900
Bhopal	₹2,79,900
Lucknow	₹2,79,900
Chandigarh	₹2,79,900

In states like Uttar Pradesh and Bihar, silver prices were also trading around ₹2,79,900 per kilogram.

Chennai and Hyderabad Continue to Trade Higher

Silver prices in southern Indian markets remained comparatively higher than northern cities.

In Chennai and Hyderabad, silver prices were trading near ₹2,89,900 per kilogram.

Similarly, Kerala also witnessed elevated silver prices compared to many northern states.

Experts say regional taxes, transportation costs, local demand, and bullion market dynamics often contribute to price differences across cities.

Could Silver Prices Rise Again?

Despite Monday’s correction, analysts believe silver may continue to remain volatile due to multiple global and domestic factors.

Some key drivers influencing silver prices include:

• Import restrictions in India
• Industrial demand from electronics and solar sectors
• Global geopolitical tensions
• US dollar movement
• Central bank interest rate policies
• Crude oil price fluctuations

Silver is not only used for jewellery and investment purposes but also plays an important role in industries such as solar energy, electronics, semiconductors, and manufacturing.

If supply concerns increase because of tighter import rules, domestic silver prices could rise again in the coming weeks.

Investors Advised to Stay Cautious

Financial experts suggest that investors should avoid making aggressive investment decisions solely based on short-term price movements.

While temporary corrections may create buying opportunities for long-term investors, market volatility is expected to remain high due to global uncertainty and policy changes.

Analysts recommend that buyers monitor international bullion trends, crude oil prices, and government policy developments carefully before making large purchases in gold or silver markets.

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