Silver Prices Crash : Silver prices witnessed a steep decline on Thursday, slipping nearly 3.5% on the Multi Commodity Exchange (MCX) and falling below ₹2.42 lakh per kilogram, shaking investor sentiment across commodity markets.
The precious metal opened weak and remained under pressure throughout the session. It touched an intraday low of ₹2,48,163 and a high of ₹2,51,889, compared with the previous close of ₹2,50,605. During the last trading session, silver plunged as much as ₹11,700 per kg, reflecting strong selling pressure.
This sharp drop comes at a time when global investors are adjusting positions ahead of major economic data and annual index rebalancing.
Global Markets Add to the Volatility
In international trade, COMEX silver showed mild recovery after a steep selloff earlier in the week. The metal was trading slightly higher at $77.78 per ounce, after touching an intraday high of $78.875.
However, analysts say the recovery remains fragile as global markets remain sensitive to U.S. macroeconomic data. Strong U.S. ADP employment numbers boosted the dollar, making precious metals less attractive for global investors.
At the same time, softer U.S. job openings data offered some support, preventing a deeper fall.
Why Are Silver Prices Under Pressure?
Index Rebalancing Triggered Heavy Selling
A key reason behind the fall is annual commodity index rebalancing. According to market reports, large passive funds were forced to reduce their exposure to precious metals to align with new index weightings.
This triggered higher-than-normal selling in gold and silver futures, pushing prices lower despite long-term bullish sentiment.
Technical Levels: Where Is Silver Headed Next?
Market experts say silver is currently in a critical technical zone.
International Levels (COMEX)
- Support: $75.10 – $73.45
- Resistance: $80.05 – $82.40
Domestic Levels (MCX)
- Support: ₹2,46,810 and ₹2,42,170
- Resistance: ₹2,55,810 and ₹2,58,470
Analysts believe a decisive breakout above $82 per ounce is needed to confirm a fresh bullish trend. Until then, the market could remain volatile.
Is This the Right Time to Invest in Silver?
Investment views on silver remain mixed.
Some analysts see this correction as a healthy pullback within a larger uptrend. If prices manage to break past key resistance levels, silver could aim for $90 per ounce in the medium term.
However, wealth managers remain cautious.
Client Associates has advised investors to stay underweight on silver for now, citing an unfavorable risk-reward balance at current price levels. They recommend waiting for more stability before taking fresh positions.
What Should Investors Do Now?
For long-term investors, silver still holds appeal due to:
- Growing industrial demand (EVs, solar panels)
- Hedge against inflation
- Strong global investment interest
But in the short term, experts suggest patience. The market needs to stabilize above key resistance levels before a strong rally can resume.
Traders should closely watch:
- U.S. economic data
- Dollar movement
- COMEX price behavior around the $82 mark