The precious metals market has seen a sudden burst of activity. After reaching high levels, investor sentiment has shifted, leading to a reversal in prices. Global developments and signs of profit-booking have influenced market movements.

Silver Crash: Silver prices witnessed a sudden, significant drop on Monday, sparking market turmoil. Considered a safe-haven, silver saw sharp profit-booking from the day's highs, causing prices to surprise investors within hours. The domestic market was also directly impacted by international cues and easing geopolitical tensions.

Silver futures for March delivery on MCX fell sharply during the afternoon session. Prices fell nearly ₹21,000 per kg within an hour, reaching an intraday low of ₹233,120. Earlier in the day, silver had hit an all-time high of ₹254,174 per kg. After reaching the higher levels, traders began booking profits quickly, leading to a drop in prices.

Pressure from the international market

Silver prices also experienced significant fluctuations in the global market. On Monday, silver prices surpassed $80 per ounce for the first time, but they didn't hold there for long. Prices later slipped below $75 per ounce, driven largely by profit-booking and positive signals about a potential peace agreement between the United States and Ukraine.

Expectations of easing geopolitical tensions have dampened safe-haven demand. Precious metals like gold and silver are experiencing sharp fluctuations, and investors are now adopting a cautious stance. However, experts believe that silver could reach ₹275,000 per kilogram on MCX and 80 to 85 USD per ounce globally in 2026. Factors such as potential rate cuts by the US Federal Reserve, global trade tensions, and export restrictions imposed by China from January 1, 2026, could impact the prices of both gold and silver in the future.

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