Silver prices witnessed a sharp sell-off on Tuesday, with MCX silver futures hitting the 6% lower circuit amid intense global volatility in precious metals.
As per the latest data, Silver Futures (continuous contract) on the Multi Commodity Exchange of India were trading at Rs 2,61,773 per kg, down Rs 16,708 or 6%, triggering the lower circuit limit.
Global silver slides over 4%
In international markets, silver futures fell around 4.3% to $85 per troy ounce, after a strong rally in the previous session. The decline comes as the U.S. dollar index strengthened 0.6% to 99.02, making dollar-denominated commodities more expensive for overseas buyers and pressuring prices.
Analysts noted that silver continues to exhibit higher volatility compared to gold. Thin liquidity and positioning have amplified intraday swings, leading to sharper corrections during risk-off sessions.
Why silver is falling
The sharp correction follows a parabolic rally in late 2025 and early 2026, where silver surged to record highs above $120 per ounce amid geopolitical tensions, industrial demand optimism and heavy investment inflows.
Key factors behind the current decline include:
- Stronger US dollar, which typically weighs on precious metals.
- Rising US rate expectations, increasing the opportunity cost of holding non-yielding assets like silver.
- Profit booking and liquidation after the extended rally.
- Wider gold-silver ratio, indicating silver underperforming gold in the current pullback.
While geopolitical tensions in the Middle East initially boosted safe-haven demand, easing risk momentum during the session triggered aggressive profit-taking.
Broader context
Spot silver has slipped to the $83–86 per ounce range, depending on the feed and timing, marking a sharp correction from recent highs. Gold, meanwhile, has seen relatively milder declines, highlighting silver’s higher beta and volatility.
With MCX silver previously trading near record highs close to Rs 3 lakh per kg, today’s 6% fall represents a significant intraday reversal driven largely by global macro and currency dynamics.
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