Silver had surged to all-time highs in both global and Indian markets earlier this week, driven by safe-haven demand, supply concerns and heavy speculative buying. After such a near-vertical rally, traders rushed to lock in profits, triggering sharp selling across futures and ETFs. Internationally, spot silver fell around 9–10%, sliding back toward the $104–107 per ounce range after failing to sustain levels near $120. The global correction directly spilled over into MCX prices.
The US dollar rebounded after recent weakness, weighing on precious metals. A firmer dollar makes silver more expensive for non-US buyers and typically accelerates short-term liquidation in commodities priced in dollars.
MCX silver had been trading at a steep premium to global prices. As international silver corrected, this premium compressed sharply, leading to a deeper fall in Indian prices compared with overseas markets.
Silver is inherently more volatile than gold. Once selling begins after an extreme rally, lower circuits and margin-related selling can amplify downside moves, as seen in Friday’s session.
