Silver Plunge Shocks Bulls: Prices Crash After Record Rally
Silver Plunge Shocks Bulls: Prices Crash After Record Rally
Silver peaks then reverses as profit-taking, a stronger dollar and easing tensions weigh on safe-haven demand.
In a dramatic reversal, MCX Silver March futures slumped about 8%—down roughly Rs 21,000 per kg—from a record peak of Rs 254,174/kg to about Rs 233,120/kg. The price plunge came after a nonstop rally that had lifted silver into uncharted territory. Spot silver traded in the mid-$70s after earlier touching the $83.62/oz level, erasing much of the year-to-date gain.
Analysts cited profit-booking, easing geopolitical risk as talks between the U.S. and Ukraine progressed, and a stronger dollar as primary triggers for the retreat. The sudden pullback underscored how quickly sentiment can shift when safe-haven demand cools amid improving risk conditions and favorable headlines.
The technical backdrop looked stretched: prices hovered about 89% above their 200-day moving average, a level that has preceded meaningful drops in past market cycles, traders warned. Such parabolic moves tend to reverse sharply, leaving room for sharp downside revisions before a new balance is found.
Despite the pullback, many observers note underlying supply constraints and robust physical demand—spanning electronics, solar, and industrial uses—that could underpin a renewed rally if macro conditions stay supportive. Market participants will watch for further price action, liquidity themes, and headlines on currency moves and geopolitical developments that could sway the next leg in silver’s volatile journey.
