Silver prices have come under sharp pressure following a historic rally, unsettling investors who had grown accustomed to near one-way gains. On the Multi Commodity Exchange (MCX), silver futures slipped to around ₹2,37,000–₹2,38,000 per kg, after closing at ₹2,32,723 in the previous session. The metal is now trading nearly ₹18,000 below its record high of ₹2,54,174 per kg, marking a steep correction driven largely by global market cues.
The sudden pullback has increased volatility and raised concerns over whether the rally has peaked. Market experts, however, believe the move represents a technical correction rather than a structural reversal. They also warn that volatility may persist in the near term as U.S. and other major global markets remain partially closed for New Year holidays, resulting in thin liquidity. A clearer directional trend is expected once global markets resume full trading next week.
According to Ponmudi R, CEO of Enrich Money, the decline has been driven by short-term factors including higher margin requirements, forced deleveraging, year-end tax harvesting, and low trading volumes. These elements combined to intensify selling pressure as leveraged positions were unwound.
From a technical standpoint, silver is finding initial support near its rising channel and the 20-day moving average. If MCX prices manage to hold above ₹2,36,000, a rebound toward ₹2,45,000–₹2,60,000 rem
The weakness mirrors global trends. On COMEX, silver plunged more than 7% in a single session, sliding from $82–$84 per ounce to around $72–$72.30. Analysts attribute the sell-off to tighter margin norms introduced by the Chicago Mercantile Exchange (CME), which triggered forced unwinding across leveraged trades.
Despite near-term turbulence, experts advise investors to remain cautious rather than panic. Strong industrial demand and ongoing supply constraints continue to underpin silver’s longer-term outlook, making staggered accumulation on dips a sensible strategy for long-term investors.
