Global silver and gold prices fell further on Friday as hot US producer price data lifted the odds of a Federal Reserve rate hike past 70%, with domestic MCX silver futures also slipping ahead of the day’s US inflation report.
Why Silver and Gold Prices are Falling
The US Producer Price Index (PPI), which tracks wholesale prices paid by factories and businesses, rose 5.4% year-on-year in August 2026. The data, released on Thursday, 10 September, came in above the roughly 5.3% that economists had expected.
A hotter-than-expected PPI reading signals that inflation pressure is building up the supply chain. Traders responded by raising bets that the US Federal Reserve, America’s central bank, will raise interest rates by 25 basis points (0.25 percentage points) at its policy meeting next week.
According to the CME FedWatch tool, which tracks trader expectations for Fed decisions, the probability of a rate hike jumped from about 61% before the PPI data to more than 70% afterwards.
Rising oil prices added to the pressure. Crude climbed as tensions between the US and Iran escalated, pushing up energy costs that were a key reason behind August’s hot PPI print.
Gold and silver are non-yielding assets — they pay no interest or dividend. When expectations of higher interest rates rise, holding cash or bonds becomes relatively more attractive, and demand for gold and silver tends to soften.
How Much Global Prices Have Fallen
Spot silver tumbled sharply on Thursday, sliding from a session high near $68.50 to a low around $63.87 an ounce a fall of roughly 5% in a single session. Gold fell far less, down close to 1% to around $4,358 an ounce.
The slide continued into Friday. Silver was trading around $63.30 to $64 an ounce during Asian and early European hours, taking its loss for the week to nearly 4% its third straight weekly decline.
Silver falling harder than gold is a familiar pattern. Silver is both a precious metal and an industrial one, used in solar panels, electronics and electric vehicles, which makes it more sensitive to shifts in sentiment than gold. This has widened the gap between the two metals’ prices, a gap traders track as the gold-silver ratio.
MCX and Domestic Prices Also Slip
The weakness has carried through to India’s commodity market. On the Multi Commodity Exchange (MCX), silver futures for December delivery fell by ₹735, or 0.31%, to ₹2,33,364 per kilogram on Friday, as traders trimmed their positions.
Domestic gold and silver retail rates in major Indian cities were also lower through the day, tracking the global sell-off, though the exact rupee figure varies by city, purity and the time it is checked.
Since silver and gold are priced internationally in US dollars, their price in India also depends on the rupee-dollar exchange rate. A weaker rupee can partly offset a global price fall for Indian investors, while a stronger rupee can add to it.
Retail investors who want exposure to this price move without holding physical metal typically do so through gold or silver exchange-traded funds (ETFs), which trade on stock exchanges like shares. To buy, hold or sell ETF units, an investor needs a demat account, since the units are held electronically rather than as certificates or physical bars.
Today’s Key Numbers at a Glance
| Metric | Level (11 Sept 2026) | Change |
|---|---|---|
| Global spot silver | ~$63.30–$64.00/oz | Down after ~5% slide on 10 Sept |
| Global spot gold | ~$4,358/oz | Down about 1% |
| MCX silver futures (Dec) | ₹2,33,364/kg | Down 0.31% |
| US PPI, August (YoY) | 5.4% | Above 5.3% forecast |
| CME FedWatch hike odds | Above 70% | Up from ~61% pre-PPI |
What Investors are Watching Next
The US Consumer Price Index (CPI) report for August, due later on Friday, is the last major inflation reading the Fed will see before its meeting next week. Economists broadly expect headline CPI to hold close to 3.4% year-on-year.
A hotter-than-expected CPI print could reinforce bets on a rate hike and add further pressure on gold and silver. A softer reading could ease some of that pressure and give the metals room to stabilise.
Given how quickly international and MCX gold and silver rates are moving through the day, investors and traders following this story can track live prices through an online trading platform rather than relying on a single snapshot.
Investments in securities and commodities are subject to market risks. This article is for informational purposes only and is not investment advice.
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