The sharp rally in silver prices has come to a sudden halt. On Monday, silver prices crashed heavily in the futures market, wiping out major gains within a short span.
On the Multi Commodity Exchange (MCX), silver prices in the March contract plunged by nearly ₹21,000 per kilogram within an hour. During intraday trade, silver touched a high of ₹2,54,174 per kg before sliding sharply to a low of ₹2,33,120 per kg.
Meanwhile, silver prices also declined in the spot market. In the Hyderabad Bullion Market, silver, which had crossed the ₹2.50 lakh mark, slipped to around ₹2.39 lakh per kg by 3 pm.
Profit Booking Triggers Sharp Fall
Recently, silver witnessed an unprecedented surge due to rising geopolitical uncertainties. In fact, silver prices rallied sharply in the international market, climbing from below $50 to over $80 per ounce at one point. However, heavy profit booking at record highs triggered a sudden correction.
Ukraine Peace Hopes Weigh on Prices
Another major factor behind the silver price crash is optimism over a possible peace agreement between Russia and Ukraine. Ukrainian President Volodymyr Zelensky recently met former US President Donald Trump, raising hopes of an end to the prolonged war. As a result, safe-haven demand for precious metals weakened, putting pressure on silver prices.
Margin Hike Adds Selling Pressure
Additionally, selling pressure intensified after the Chicago Mercantile Exchange (CME) raised margins for the March 2026 silver futures contract. The margin was increased from $20,000 to $25,000, prompting high-risk traders to exit their positions.
Despite the recent fall, silver has still gained 181% so far this year. Analysts note that silver continues to trade nearly 89% above its 200-day moving average, indicating that volatility may persist in the near term.
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