Silver prices witnessed a sharp reversal on the Multi Commodity Exchange (MCX) on Monday, December 29, slipping more than 5 percent in evening trade after scaling an all-time high earlier in the day.
According to MCX data, Silver March futures fell 5.7 percent to ₹2,25,954 per kg around 8:00 pm, sharply lower from the record peak of ₹2,54,174 per kg touched during the morning session. The selling pressure intensified as the session progressed, with prices extending losses after a steep intraday reversal.
The decline followed heavy profit booking after silver surged past the ₹2.5 lakh per kg mark for the first time in domestic markets. Similar selling pressure was also visible in international markets.
Globally, silver prices had crossed the $80 per ounce level earlier in the day for the first time, before retreating later as traders locked in gains following a massive rally of over 180 percent.
Despite the sharp pullback, silver remains the best-performing asset of the year, having gained 181 percent year-to-date, significantly outperforming gold. Analysts attribute silver’s outsized moves to its relatively smaller and less liquid market, which makes prices more vulnerable to sharp spikes and swift corrections.
According to a Bloomberg report, even moderate buying interest can push silver prices sharply higher, while profit booking can lead to equally rapid declines. This dynamic has amplified volatility in the white metal over recent sessions.
Meanwhile, market participants remain cautious as heightened volatility continues to dominate precious metals trading.
Disclaimer: Commodity prices are subject to market risks. Investors are advised to consult certified experts before making investment decisions.
