Silver prices witnessed an extreme intraday collapse on MCX on Sunday, plunging nearly Rs 30,000 per kg within just 15 minutes of trade and falling below the Rs 2.70 lakh mark during the special Budget Day session. The sharp move came after silver initially hit the lower circuit, before selling pressure intensified once trading resumed.
The sudden fall reflects continued panic unwinding after last week’s historic crash, when silver recorded one of its steepest single-session declines in modern trading history. Silver had rallied sharply through January, making it one of the most crowded and leveraged trades in the commodity market. As prices reversed, margin calls, stop-loss triggers and forced liquidation accelerated the decline.
Adding to the pressure was spillover weakness from gold and copper, both of which also saw sharp falls on MCX. A stronger US dollar and fading expectations of aggressive US interest rate cuts further weighed on sentiment, reducing appetite for precious metals.
Silver’s high leverage and thinner liquidity compared with gold amplified the speed and magnitude of the fall. Thin liquidity during the special Sunday session allowed prices to slide rapidly once the circuit limits were breached.
The sharp drop highlights silver’s tendency for violent price swings after parabolic rallies, especially during periods of heightened volatility like Budget Day.
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