Silver rate today extended losses, to hit 9% lower circuit on Sunday, February 1 as investors rushed to book profits amid a global selloff triggered by a stronger US dollar. Sentiment was further impacted after reports that CME Group is raising margins on Comex gold and silver futures. Investors also remained cautious ahead of the Union Budget 2026.
On MCX, silver price today fell 9% to lower circuit of ₹2,65,652 per kg while MCX Gold rate also hit its lower circuit of 9% to ₹1,36,185 per 10 grams.
On Friday, January 30, Silver prices collapsed 19% to ₹3.12 lakh per kg, while gold plunged 2% to ₹1.65 lakh per 10 grams. This fall came just after silver had touched a record of ₹4,04,500 per kg on Thursday before collapsing sharply on Friday.
Global commodity markets were closed on Sunday.
Reasons Behind the Fall
The fall in precious metals was closely linked to developments in the US currency and derivatives markets. The dollar index rose 0.9% to close at 97.15 after US President Donald Trump nominated Kevin Warsh, a former Fed governor and known proponent of a strong dollar, to head America’s central bank, the Federal Reserve. This development dented the appeal for safe-haven assets like gold and silver.
At the same time, Bloomberg reported that CME Group is raising margins on Comex gold and silver futures after prices suffered their biggest slides in decades.
Gold margins will rise to 8% of the value of the underlying contract from the current 6% for non-heightened risk profile. The heightened risk profile margins will be increased to 8.8% from the current 6.6%.
Silver margins will climb to 15% from the current 11% for non-heightened risk profile, while the heightened risk profile margins will be hiked to 16.5% from the current 12.1%. Margins on platinum and palladium futures will also be boosted.
The pressure was even more intense in global markets. On Friday, spot silver slumped $31.44, or 27.07%, to close at $84.70 per ounce after plunging as much as 36% intraday to $73.30 per ounce. Gold also slid by $530.53, or 9.83%, to settle at $4,865.35 per ounce. During the session, gold had tanked $689.92, or 12.8%, to hit an intraday low of $4,683.10 per ounce.
Both metals had earlier touched all-time highs of $121.45 for silver and $5,595.02 for gold on Thursday, driven by safe-haven demand.
The Rally in January
Despite this sudden fall, silver still ended January with sharp gains, rising ₹73,000, or 30.5%, from ₹2,39,000 per kg recorded on December 31, 2025. Gold too delivered a strong monthly rise. In January, gold prices increased by ₹27,800, or 20.2%, from ₹1,37,700 per 10 grams recorded at the end of last year. The precious metals surge was aided by ongoing geopolitical between US and Iran, and a sharply weaker US dollar amid policy uncertainty in Washington. Escalations of geopolitical tensions—such as U.S.–EU tariff threats tied to Greenland— also triggered a flight to precious metals.
What’s next for Silver? A Technical Outlook
Ponmudi R, CEO at Enrich Money, explained that the extreme fall in prices should be viewed in the context of the preceding vertical rally and the structure of the ongoing bull phase rather than as a reversal of the broader trend. He noted that the magnitude of the correction in silver, in particular, reflects how rapidly leveraged positions were unwound after prices had surged to unsustainable highs in a short span of time.
“Silver endured even more extreme volatility, plunging nearly 40% from highs above $118–$121 to around $74–$85 (with lows near $74). This outsized correction aligns with historical late-stage bull phase shakeouts, but silver’s hybrid monetary-industrial profile continues to underpin the outlook amid persistent supply tightness and demand growth.”
He highlighted that the $74–$70 zone, which aligns with the 50-day EMA, now forms a critical demand support area for COMEX silver. Stability above this zone could pave the way for a rebound towards $82, $92 and even $100+ levels as industrial demand tailwinds re-emerge and price momentum rebuilds. The broader ascending channel, he indicated, remains intact and supportive on shallow pullbacks.
In the domestic market, MCX silver has corrected sharply from peaks near ₹4,20,048 per kg to around ₹2,91,925– ₹2,91,000. According to him, while volatility remains elevated, structural support is visible near ₹2,91,000, with stronger alignment around ₹2,51,000– ₹2,52,000 linked to the 50-day EMA. A decisive hold above these levels and a move back above ₹3,00,000– ₹3,10,000 could signal renewed buying interest, potentially accelerating prices towards ₹3,40,000– ₹3,50,000+ amid supply constraints.
“Overall, the sharp correction across gold and silver represents a leverage flush, sentiment reset, and tactical adjustment rather than a trend reversal. Near-term choppiness may linger amid dollar dynamics, but disciplined buying on dips guided by key supports and channel integrity should define the next leg higher in this secular bull market into 2026.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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