Silver prices witnessed a dramatic correction in India on January 31, 2026, ending a powerful rally that had lifted rates to record highs earlier in the week. The precious metal dropped heavily across all weight categories, surprising traders and retail buyers who had rushed in during the recent surge. The sudden fall reflects global volatility, profit booking, and changes in currency and interest rate expectations.
According to today’s bullion data, silver now trades at ₹350 per gram, down sharply from yesterday’s ₹395 per gram. This decline of ₹45 per gram marks one of the steepest single-day drops in recent months. The correction appears after several sessions of strong gains that pushed silver close to historic levels in Indian markets.
Today’s Silver Rates in India (Jan 31, 2026)
Today’s silver prices show a clear and uniform fall across different weights:
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1 gram: ₹350 (down ₹45)
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8 grams: ₹2,800 (down ₹360)
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10 grams: ₹3,500 (down ₹450)
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100 grams: ₹35,000 (down ₹4,500)
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1 kilogram: ₹3,50,000 (down ₹45,000)
The sharp decline in the 1 kg rate highlights the scale of selling pressure. A ₹45,000 fall in a single day indicates strong liquidation by traders and reduced short-term demand from industrial buyers and investors.
Weekly Price Trend: From Rally to Correction
A look at silver prices over the last ten days shows extreme volatility.
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Jan 22, 2026: ₹3,25,000 per kg
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Jan 23, 2026: ₹3,40,000 per kg (+₹15,000)
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Jan 24, 2026: ₹3,35,000 per kg (−₹5,000)
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Jan 25, 2026: ₹3,35,000 per kg (no change)
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Jan 26, 2026: ₹3,60,000 per kg (+₹25,000)
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Jan 27, 2026: ₹3,70,000 per kg (+₹10,000)
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Jan 28, 2026: ₹3,80,000 per kg (+₹10,000)
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Jan 29, 2026: ₹4,10,000 per kg (+₹30,000)
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Jan 30, 2026: ₹3,95,000 per kg (−₹15,000)
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Jan 31, 2026: ₹3,50,000 per kg (−₹45,000)
Silver climbed from ₹3.25 lakh per kg on January 22 to a peak of ₹4.10 lakh per kg on January 29. This jump of ₹85,000 within a week attracted aggressive buying from traders and investors. However, the momentum reversed quickly. Prices fell for two consecutive sessions, erasing a large portion of the gains.
Reasons Behind Today’s Sharp Fall
1. Heavy Profit Booking
Silver had rallied too fast in a short span. Traders who entered at lower levels chose to lock in profits after prices crossed ₹4 lakh per kg. This selling pressure intensified once prices began slipping, triggering stop-loss orders and further liquidation.
2. Stronger US Dollar
Silver trades globally in dollars. A stronger dollar reduces the appeal of precious metals for investors holding other currencies. Recent moves in the currency market strengthened the dollar and pushed metals like silver and gold lower.
3. Higher Interest Rate Expectations
Expectations of tighter monetary policy and higher interest rates reduce demand for non-yielding assets like silver. Investors shifted funds toward safer interest-bearing instruments, weakening bullion prices.
4. Technical Correction After Overbought Levels
Market indicators showed silver in an overbought zone after its rapid rally. Technical traders anticipated a correction and initiated short positions, accelerating the downward move.
5. Cooling Industrial Demand
Silver also serves as an industrial metal, especially in electronics and solar panels. Short-term uncertainty in global manufacturing outlook reduced buying interest from industrial users.
Impact on Indian Investors and Buyers
The fall in silver prices affects different groups in different ways.
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Retail buyers: Many buyers who waited for a correction now see an opportunity to purchase silver at lower levels. Jewellery demand and coin purchases may increase if prices stabilize.
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Traders: High volatility increases risk but also creates opportunities for short-term profits. However, sudden swings can wipe out gains for poorly positioned traders.
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Industrial users: Lower prices reduce raw material costs for manufacturers using silver in electronics and solar equipment.
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Long-term investors: Investors who believe in silver’s long-term fundamentals may view this dip as a buying opportunity.
Comparison with Gold Market
Silver’s fall appears sharper than gold’s movement. Gold usually acts as a safer store of value during uncertainty, while silver reacts more aggressively to market speculation and industrial demand changes. This difference explains why silver often shows larger percentage moves compared to gold.
Market Sentiment: Fear and Caution
Today’s price action created caution among investors. Many fear further downside if global cues remain negative. At the same time, some analysts believe silver still holds strong long-term potential because of its growing use in green energy and technology sectors.
The key question now centers on whether this drop marks a temporary correction or the beginning of a longer downtrend. Much depends on currency movements, interest rate signals, and global economic data in the coming days.
What to Watch Next
Investors and traders should focus on several factors:
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Global market direction: International silver prices will guide domestic rates.
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Dollar index movement: Any weakening in the dollar could support silver prices.
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Inflation data: Higher inflation usually boosts demand for precious metals.
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Industrial demand trends: Solar and electronics sector demand can influence silver’s next move.
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Government and central bank signals: Policy clarity can stabilize or shake bullion markets further.
Outlook for Silver Prices
In the short term, silver may remain volatile. After such a steep fall, prices could attempt a technical rebound. However, strong resistance may appear near previous highs around ₹3.9 to ₹4.1 lakh per kg.
In the medium to long term, silver still benefits from structural demand in renewable energy, electric vehicles, and electronics. Supply constraints in mining also support prices over time. If inflation concerns rise again or currencies weaken, silver could regain upward momentum.
Conclusion
Silver prices in India fell sharply on January 31, 2026, breaking a powerful rally that had pushed rates to record levels earlier in the week. The price dropped to ₹3,50,000 per kg, losing ₹45,000 in a single day. Profit booking, stronger currency movements, and technical corrections drove this decline.
Despite today’s shock, silver remains an important asset for both investors and industrial users. The current correction offers a moment for reflection and strategy rather than panic. Market participants must track global cues closely before making fresh decisions. Volatility will likely continue, but silver’s long-term story linked to industrial growth and green technology still holds significance.
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