Silver plunges, volatility spikes as futures dip below key mark
Silver plunges, volatility spikes as futures dip below key mark
Silver prices tumble in India's market as volatility surges, with futures slipping below Rs 2.5 lakh per kg and margins tightened for traders.
Silver prices in India slid sharply amid heightened volatility, with MCX March silver futures plunging about 8% and briefly dipping below the Rs 2.50-lakh per kg level. Traders watched as the metal touched a low of Rs 2,44,654 per kg in early trade and then hovered around Rs 2,46,952, signaling a volatile session for the precious metal.
Analysts point to a mix of factors driving the swing: structural supply constraints paired with firmer industrial demand from solar, electric vehicles and technology sectors. The result is a market that could stay choppy through 2026, with volatility seen as a defining feature rather than a one-off spike.
To temper risk and curb systemic exposure, the exchange announced margin measures: an additional margin of 4.5% on silver futures and 1% on gold futures effective from Thursday, followed by a further 2.5% on silver futures and 2% on gold futures effective from Friday, February 6.
Even as prices stabilized briefly, traders noted that the metal’s near-term trajectory remains tethered to supply-demand dynamics and global price moves. In technical terms, immediate resistance is pegged around Rs 2,90,000–Rs 3,00,000, with a possible extension toward Rs 3,25,000 if momentum sustains. Conversely, a strong structural base has been identified in the Rs 2,20,000–Rs 2,35,000 zone for silver futures.
Market watchers say dips could still offer accumulation opportunities for positional participants, but the broader market mood remains cautious as participants reassess exposure to silver amid ongoing volatility and shifting macro signals.
