Silver prices in India extended their decline on Friday, tracking sharp weakness in global markets as risk appetite deteriorated across asset classes. MCX silver futures (SILVER1) were trading around Rs 2,35,803 per kg, down over 3%, reflecting the steep correction seen in international silver prices over the past two sessions.
Globally, silver witnessed extreme volatility, with spot silver plunging nearly 19% in the previous session and briefly falling below the $65 per ounce level, hitting a more than one-and-a-half-month low. Although prices stabilised slightly to around $71 per ounce, silver remained on course for its second consecutive weekly loss, down nearly 16% this week after shedding 18% last week, marking its largest weekly fall since 2011.
The sharp selloff in silver has been driven primarily by a risk-off environment in global markets. A renewed rout in technology stocks, coupled with heavy losses on Wall Street, pushed investors away from high-beta and speculative assets. Market participants noted that while gold managed to hold relatively steady, silver faced disproportionate selling due to its higher sensitivity to economic risk.
Adding to the pressure was a stronger U.S. dollar, which hovered near a two-week high and was set for its best weekly performance since November. A firm dollar typically weighs on dollar-denominated commodities, making them more expensive for holders of other currencies and dampening demand.
Commenting on the divergence between gold and silver, Ilya Spivak, head of global macro at Tastylive, noted that weakening risk sentiment has hurt silver far more than gold, as broader evidence points to declining appetite for risk assets, including equities and cryptocurrencies.
Meanwhile, JPMorgan said in a note that relatively rich silver valuations have left the metal vulnerable to outsized corrections during risk-off phases. While the bank still sees a higher near-term floor for silver around $75–$80 per ounce and expects a recovery towards $90 next year, it cautioned that near-term volatility could remain elevated.
Expectations around U.S. monetary policy also influenced sentiment. Investors are pricing in at least two 25-basis-point rate cuts by the U.S. Federal Reserve in 2026, with the first expected in June. While lower rates generally support non-yielding assets like precious metals, the immediate impact of equity market stress and dollar strength has overshadowed this supportive factor for silver.
Other precious metals also reflected the broader weakness. Spot platinum fell sharply, while palladium showed marginal gains but remained lower on a weekly basis, underscoring the fragile sentiment across the metals complex.
Overall, the fall in MCX silver futures mirrors global risk aversion, a stronger dollar, stretched valuations, and heavy liquidation following a failed rebound. With volatility remaining high, silver prices are likely to continue tracking global macro cues and equity market movements closely in the near term.
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