Over the past week, silver prices have swung wildly, with analysts describing the moves as among the most turbulent since the 1980s. The sell-off intensified in Friday’s session, with investors continuing to aggressively offload silver, pushing prices firmly into the red for the year.
The RBI has cautioned that geopolitical risks, volatility in energy markets, and weather changes could introduce upside risks to inflation in the months ahead.
Explaining the recent fall in silver, Akshat Garg, Head - Research & Product of Choice Wealth, said, "Silver has come off mainly because it had run up too fast in a short period." He added, "Silver, by nature, reacts more sharply than gold. It is a smaller and thinner market, so when selling starts, the fall looks steeper."
The losses have accelerated this week, with bitcoin plunging roughly 17% in the past five days. Bitcoin has been on a steady decline for more than three months and is now over 45% below its all-time high of $126,000 reached in early October.
3 Reasons Why Gold And Silver Prices Have Crashed Again And what's Next
MCX Silver futures for March delivery plunged nearly 10% to around Rs 2,43,000 per kg, marking a dramatic reversal from recent highs. Gold futures also weakened, though to a far lesser extent, with April contracts slipping about 3% to roughly Rs 1,48,500 per 10 grams.
Silver and gold investors who entered at peak levels are facing short-term pain, especially in Silver ETFs bought around ₹3.5–4.5 lakh levels. Commodity expert Vandana Bharti believes the correction has been emotionally difficult, but not structurally damaging. She emphasises that both gold and silver remain fundamentally strong metals and are unlikely to stay trapped in a prolonged bottom. Drawing parallels with gold’s recent sharp fall and swift recovery, she expects a similar trend for silver. ETFs may feel more pressure due to tracking mechanisms, but recovery could be equally sharp. Vandana suggests investors extend their holding period, potentially till Diwali, as prices stabilise and recover, increasing the probability of returning to the green zone rather than exiting in panic.
In Business Today's Market Commentary, Shailendra Bhatnagar discusses the volatile mood in precious metals amid sharp corrections and recoveries on MCX. Silver trades ~4% higher at ₹2,80,500 per kg (after falling from ₹4.8 lakh highs to ₹2.3 lakh in speculative shakeout), while gold rises ~5% to ₹1,49,244 per tola (10g equivalent). Guest Vandana Bharti (SMC Global) views the recent plunge as a necessary "reset" due to over-speculation, margin calls, and profit-booking - sharper and quicker than expected. Physical premiums washed out, but demand remains resilient. Gold shows more stability; both metals now in recovery. Fundamentals remain strong (not like lithium/nickel traps) - central banks, crypto/stablecoins, and geopolitical factors drive upside. Advice for investors stuck at ₹3.5-4 lakh in silver ETFs: Hold longer (till Diwali for green zone potential); average on dips (wait for March demand correction, international $78-82, MCX ~₹2.60 lakh). Prefer ETFs for easy entry/exit over physical (premiums apply). Limit to 10-20% portfolio allocation. Outlook: Gold targets $5,400-5,500; silver/industrial metals (copper/aluminum/zinc) strong on deficits, strategic reserves, and demand. Crude needs geopolitics for upside.
On the domestic front, MCX gold April futures opened 3% higher at ₹1,58,420 per 10 grams compared with the previous close of ₹1,53,809. Prices touched an intraday high of ₹1,60,755, marking a gain of as much as 4.51%. Silver prices also saw a sharp rebound.
With spot gold at around $4,894 per ounce as of January 30, UBS has maintained its mid-year price forecast of $6,200 per ounce, implying upside of roughly 27% from current levels.
After a parabolic rally through January, both gold and silver witnessed a violent correction that erased a significant portion of recent gains. Data shows silver correcting more than 40% from its peak, while gold fell over 20% from record highs.





