Silver crash: White metal slides Rs 11,000 on MCX as global cues trigger sharp selloff in precious metal

Silver prices came under heavy selling pressure on Thursday, January 8, extending the sharp correction seen in the previous session as profit-booking set in after the metal’s record-breaking rally in 2025. On the Multi Commodity Exchange (MCX), silver prices on January 8 plunged by as much as Rs 11,000 per kilogram to hit an intraday low of Rs 2,40,605 on Thursday, while weakness was also visible in global markets.

In overseas trade, spot silver dropped 2.7% to $76.01 (Rs 6,851) per ounce, though the scale of the decline was milder compared with domestic markets. One ounce is equal to 28.3495 grams.

Back home, MCX silver futures for March 5 expiry snapped a four-day winning streak, falling over 3% to around Rs 2,51,720 per kg after touching fresh all-time highs earlier in the session. 

Market participants said the sharp reversal reflected a combination of global cues and technical factors. Anuj Gupta, Director at Ya Wealth, noted that COMEX silver is facing resistance near $79 per ounce, with a more decisive hurdle at $82. “A sustained bullish trend can only be confirmed if silver closes above $82. Once that happens, prices could move towards $90 per ounce. Until then, volatility is likely to remain high,” he said.

Earlier in the day, MCX silver had surged to a record Rs 2,59,692 per kg, rising Rs 881 or 0.34% in morning trade. However, prices later slumped sharply, at one point erasing nearly Rs 8,000 per kg from intraday highs before recovering some ground. On Tuesday, silver had climbed more than 5% to set a new peak, underscoring the intensity of recent swings.

Globally, silver has retreated from its all-time high of $83.62 per ounce hit on December 29, 2025. Despite the recent correction, the metal remains one of the best-performing commodities, having surged over 147% in 2025 on the back of strong industrial demand and growing investor interest.

Fall in Silver ETFs

Silver exchange-traded funds (ETFs) also mirrored the choppy trend. While some ETFs, such as SBI Silver ETF, Axis Silver ETF, HDFC Silver ETF and Tata Silver ETF traded with marginal gains, others including ICICI Prudential, Nippon India, Motilal Oswal, UTI and Zerodha Silver ETFs saw only limited upside, reflecting cautious sentiment among investors. Analysts continue to warn that silver tends to display higher volatility than gold, often showing bubble-like behaviour during sharp rallies.

Why is silver falling

Experts point to rising geopolitical and economic uncertainty as a key trigger for the selloff. A HSBC report projects that silver prices are likely to trade in the $58–$88 range in 2026, supported by tight physical supply, strong investor demand and elevated gold prices. Sugandha Sachdeva, Founder of SS WealthStreet, said US President Donald Trump’s reported approval of a Russia sanctions bill has rattled markets. The bill allows for punitive tariffs of up to 500% on countries importing crude oil from Russia, raising fears of fresh disruptions in global trade and growth.

“COMEX silver has major support at $75.50 per ounce, and prices are currently holding above that level. On MCX, strong support lies near Rs 2,35,000 per kg. A break below this could trigger another leg of selling, possibly leading to a Rs 15,000 correction,” Sachdeva said.

Ross Maxwell, Global Strategy Operations Lead at VT Markets, said silver’s outlook remains more complex than gold’s. “In the short term, uncertainty may push silver higher alongside gold. But since silver is closely tied to industrial demand, prolonged instability or a slowdown in global growth could weigh more heavily on its price.”

Anuj Gupta of Ya Wealth added that MCX silver has now slipped below Rs 2,50,000 per kg, with immediate support seen in the Rs 2,42,000–Rs 2,40,000 range. “If this zone fails, prices could test Rs 2,25,000 levels,” he said, warning investors to brace for continued volatility in the near term.