Silver futures extended losses to nearly 9% on MCX on Sunday after remaining locked at the lower circuit for the first 15 minutes of the special Budget Day trading session. Prices slipped sharply as selling pressure intensified once trading resumed, reflecting continued stress across global metal markets.
The deeper fall comes as silver remains in the grip of a historic post-rally correction. The metal had already witnessed an extraordinary collapse of 25–36% in a single session in late January, one of the steepest single-day declines in modern trading history. Sunday’s sharp move indicates that forced liquidation and leverage unwinding are still playing out.
Silver had surged nearly 70% in January, making it one of the most crowded and speculative trades across global commodities. Once prices began to fall, profit booking turned disorderly, with margin calls triggering aggressive selling. Silver’s high leverage and thinner liquidity compared with gold have amplified the downside.
Pressure has also come from a stronger US dollar, after markets reassessed expectations of aggressive US interest rate cuts. The nomination of former Federal Reserve Governor Kevin Warsh as the next Fed Chair reduced expectations of rapid easing, pushing the dollar higher and weighing heavily on dollar-denominated metals like silver.
In addition, spillover weakness from gold and copper — both of which also hit sharp declines — further dented sentiment. Thin liquidity during the special trading session allowed prices to slide rapidly once the lower circuit was lifted, pushing silver to a deeper loss.
Overall, silver’s extension to a 9% decline reflects a continuation of the global metals rout, driven by profit booking after a parabolic rally, leverage unwinding, dollar strength, and lingering shock from January’s historic crash rather than any fresh domestic trigger.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market and commodity investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
