Silver prices extended their steep decline on Friday, with losses deepening to around 11% across domestic and global markets, as aggressive profit booking followed an extraordinary rally earlier this month.
On the Multi Commodity Exchange (MCX), silver futures slipped to near Rs 3.57–3.60 lakh per kg, hitting the lower circuit in some contracts. Globally, spot silver dropped close to 10% to around the $104–107 per ounce range, retreating sharply from recent highs near $120.
The primary driver behind the sell-off is intense profit booking. Silver had witnessed a near-parabolic rise in recent weeks, driven by safe-haven demand, supply tightness and strong speculative interest. After touching record levels, traders moved swiftly to lock in gains, triggering heavy selling pressure across futures and ETF-linked products.
A rebound in the US dollar added further pressure on silver prices. A firmer dollar typically weighs on dollar-denominated commodities, making them less attractive for non-US investors and accelerating short-term liquidation.
In India, the fall was sharper due to the rapid unwinding of elevated domestic premiums. MCX silver had been trading at a significant premium to international benchmarks, and as global prices corrected, this premium began to compress quickly, amplifying losses on Indian exchanges.
Silver ETFs also reflected the sharp correction, with several funds declining between 10% and 11% in a single session, mirroring the steep fall in futures prices.
The extended decline underscores silver’s high volatility, especially after extreme rallies, as markets transition from momentum-driven buying to broad-based profit taking.
