Silver prices witnessed a sharp fall within just one hour today. On the MCX, March futures dropped by Rs 21,000 per kilogram, falling to a low of Rs 2,33,120. This sudden decline came after prices reached a record high of Rs 2,54,174 at the start of the day.
The international market also showed volatility in silver prices. On Monday, prices crossed the $80 per ounce mark for the first time but later fell below $75 amid profit booking and reports of peace talks between US President Donald Trump and Ukrainian President Volodymyr Zelensky.
The main reasons behind this sharp decline were profit booking by investors and a reduction in geopolitical tensions. News of a potential peace agreement in the Ukraine war reduced the demand for safe-haven assets like silver. Additionally, an extraordinary increase of 181% in silver prices since the start of the year led to rapid profit-taking.
Experts believe the silver trend remains positive overall but will continue to experience fluctuations. Jigar Trivedi from Reliance Securities noted that the Rs 2.4 lakh per kilogram level serves as short-term support. Meanwhile, US firm BTIG warned that the recent rapid price rise may not be sustainable and that a steep fall could follow.
Manish Banthia of ICICI Prudential Mutual Fund cited historical examples, stating that such sharp rises in silver prices rarely end peacefully. He pointed to the years 1979-80 and 2011, when silver prices fell over 90% and 75% respectively after reaching high peaks. With prices almost tripling in the past year, caution is advised.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
