Silver rate today declined another 6% on Friday, February 6, extending losses for the second straight session after brief rebound earlier in the week was wiped out by a global selloff in technology stocks and a stronger U.S. dollar. The pressure kept the white metal on course for a second straight weekly decline, as risk sentiment deteriorated across global markets.
On the MCX, silver prices fell as much as 6% to its day’s low of ₹2,29,187 per kg during the session as global cues weighed on sentiment. Meanwhile MCX Gold shed around 2% to ₹1,49,396 per 10 grams.
Moreover, COMEX Silver price also tumbled over 9% to $63.900. COMEX Gold price was down around 3% to $4,670. Meanwhile, spot gold rose 0.4% to $4,790.80 per ounce by 0224 GMT, though it remained down 1.4% for the week. U.S. gold futures for April delivery fell 1.7% to $4,806.50 per ounce.
Meanwhile, spot silver was largely steady at $71.32 per ounce, after plunging 19.1% in the previous session. Earlier in the day, prices had slipped as much as 10%, briefly falling below the $65 level to touch a more than one-and-a-half-month low. On a weekly basis, silver was down nearly 16%, following an 18% slump last week, marking its steepest weekly decline since 2011.
The U.S. dollar hovered near a two-week high and was poised for its strongest weekly performance since November, making dollar-denominated commodities costlier for holders of other currencies.
Among other precious metals, spot platinum slid 4.7% to $1,892.74 per ounce, after having touched an all-time high of $2,918.80 on January 26, while palladium gained 0.8% to $1,628.95. Both metals were also lower on a weekly basis.
Right time to buy the white metal?
Silver’s sharp correction has reignited concerns over stretched valuations and heightened volatility, even as longer-term fundamentals remain supportive. The recent selloff underscored how quickly sentiment can turn in risk-off conditions, particularly after an extended and crowded rally in precious metals.
JP Morgan said silver appeared especially vulnerable following its steep run-up, warning that rich valuations could trigger disproportionate downside during bouts of market stress. However, the global investment bank maintained that downside may be cushioned in the near term, with prices expected to stabilise before resuming a recovery next year.
“Relatively rich silver valuations leave the metal vulnerable to outsized corrections in risk-off sessions, even as we see a higher near-term floor around $75–$80 and recovery towards $90 next year,” JP Morgan said.
Market participants also pointed to technical excesses as a key driver behind the abrupt correction. Hareesh V, Head of Commodity Research at Geojit Investments Limited, said the selloff was amplified by extreme overbought conditions after both gold and silver scaled record highs in late January.
“The violent drop appears more like a technical correction than deterioration in core fundamentals, with longer-term drivers such as geopolitics, central-bank buying and macro uncertainty remaining intact,” Hareesh V said.
Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, noted that silver’s inherently higher volatility compared with gold often magnifies both rallies and corrections. He said silver historically carries annualised volatility in the 25–35% range, increasing the risk of near-term drawdowns after sharp price surges. From an investment standpoint, he recommended staggered allocations rather than lump-sum exposure to manage entry risk while retaining participation in silver’s longer-term structural drivers.
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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