Silver price crash: Silver falls by Rs 39000 again, when will the slide stop?

MCX silver futures saw a sharp decline. Investors are cautious due to weak global cues and selling pressure.

Silver Price Crash: Domestic futures markets have once again witnessed a sharp decline in silver prices. In recent days, precious metals have been under pressure due to international signals and weak demand. On Monday, during trading on the Multi-Commodity Exchange (MCX), a significant drop in silver prices was recorded. The previous closing price of silver on MCX was ₹2,65,652, which plummeted to ₹2,25,805 in a jolt, indicating a substantial fall of approximately ₹39,000.

Impact of Decline in Domestic Futures Market

This decline in the domestic futures market has surprised investors and traders. As trading commenced in the morning session, selling pressure in silver became evident. Weak global signals and a strengthening dollar impacted silver prices. Market experts believe that this sharp fall in silver is due to a decrease in demand for safe-haven investments and profit-taking. A slowdown in domestic industrial demand is also putting pressure on prices.

Situation After Budget 2026

Yesterday, Sunday, Finance Minister Nirmala Sitharaman presented the Budget 2026 in the Lok Sabha. During this, the stock market also experienced fluctuations. Furthermore, on Monday morning, prices of gold and silver also registered a decline in the domestic futures market. On MCX, gold prices were trading at ₹1,36,698 per 10 grams, down by approximately ₹5,500.

Why Silver Crashed on MCX

Several reasons are emerging for the decline in silver futures deals on the Multi Commodity Exchange (MCX). Weakness in international silver prices, an increase in US bond yields, and fears of a hawkish monetary policy from the Federal Reserve have made investors cautious. Additionally, traders began to book profits after the recent rally, causing prices to slide suddenly. Silver also appeared weak on technical charts, which further accelerated the decline.

Future Strategy for Investors

Following this significant drop in silver, investors have become cautious about their future strategy. Experts suggest that market volatility may persist at current levels. This is considered a setback for investors who had bought at higher levels. International signals, the dollar index, and industrial demand data will now influence the market, determining the direction of silver in the coming days.