New Delhi: There was a sudden big fall in silver prices on Monday, which increased the movement in the market. Silver witnessed profit recovery from the upper levels of the day, which surprised investors within a few hours. The softening of international signals and geopolitical tensions also showed a direct impact on the domestic market.
March-delivery silver futures on MCX fell sharply during the afternoon session. Prices fell by about Rs 21,000 per kg to an intraday low of Rs 2,33,120 within an hour. Earlier in the day, silver had set an all-time high of Rs 2,54,174 per kg. After reaching high levels, traders started withdrawing profits rapidly, which brought down the prices.
Pressure from the international market
In the global market too, the movement of silver was quite fluctuating. On Monday, silver prices crossed $80 per ounce for the first time, but it could not last long there either. Later, the price slipped below $75 per ounce. The main reason for this was positive signs of profit recovery and a possible peace deal between the US and Ukraine.
With the hope of easing geopolitical tensions, safe haven demand has softened. This is why precious metals like gold and silver are witnessing sharp fluctuations, and investors are now taking a cautious stance. However, experts believe that in 2026, silver can go from 2,75,000 rupees per kilogram on MCX and 80 to 85 USD per ounce globally.
Factors such as the possible rate cuts of the US Federal Reserve, global trade tensions and export restrictions implemented by China from 1 January 2026 may affect the prices of both gold and silver in the coming years.
During the calendar year, silver prices have recorded an exponential jump, as it skyrocketed by Rs 1,66,941, or 191.4 per cent, from Rs 87,233 per kg recorded on December 31, 2024.
Experts on Silver and Gold price forecast
Commenting on the rise in silver price, Rahul Kalantri of Mehta Equities, had said that China’s proposed silver export restrictions from January 1, 2026 is also a reason behind the jump also sparked a sharp rally in silver. He also cited global uncertainties as the reasons to which are driving the investment flows toward precious metals.
Analysts are of the view that Gold and silver are likely to hold their ground this week, as traders are keeping a close watch and awaiting the the US Federal Reserve’s FOMC announcements, which will provide cues on the monetary policy outlook.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
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