Silver prices saw intense volatility in domestic commodity markets on Monday, December 29, 2025, drawing widespread attention from investors and traders. After extending gains for the fifth consecutive session and touching record highs earlier in the day, silver prices witnessed a sharp intraday correction as profit booking set in during afternoon trade.
According to market data, MCX March silver futures fell by around Rs 21,000 per kg within just one hour, sliding to an intraday low of Rs 2,33,120. This marked a significant pullback from the day’s peak of Rs 2,54,174 per kg, which had briefly pushed silver to its highest level on record. The sudden drop came as traders locked in gains following the recent rally, which was largely supported by geopolitical uncertainties and strong safe-haven demand.
Market participants noted that silver had rallied sharply in recent sessions due to rising global tensions, expectations of lower interest rates, and concerns over supply disruptions. These factors had encouraged investors to shift towards precious metals, driving prices higher across global markets. However, as geopolitical concerns eased marginally and profit booking intensified, silver prices corrected sharply.
Despite the steep fall, analysts believe the broader trend for silver remains constructive. Experts point out that silver continues to benefit from strong industrial demand, particularly from the renewable energy and electronics sectors. Additionally, constrained global supply and steady investment interest are expected to provide support to prices over the medium to long term.
In the physical markets, silver rates across major Indian cities also reflected volatility. Prices in cities such as Delhi, Mumbai, Chennai, and Kolkata remained elevated compared to earlier levels, even after the intraday correction on MCX. Jewellers and bullion traders reported cautious buying as consumers waited for price stability before making fresh purchases.
Global cues also played a role in the price movement. International silver prices mirrored the trend seen in domestic markets, retreating from multi-year highs as the US dollar strengthened slightly and bond yields stabilised. Analysts said that further price direction would depend on global macroeconomic data, central bank signals, and geopolitical developments.
Market experts advise investors to remain cautious in the near term due to heightened volatility. They suggest that while short-term corrections are possible after such sharp rallies, silver’s long-term fundamentals remain intact. Investors are encouraged to track global developments closely and adopt a disciplined approach when entering the market.
Overall, Monday’s sharp movement highlighted the sensitivity of silver prices to global cues and investor sentiment. While the sudden fall may have surprised many, analysts maintain that silver continues to be an attractive asset class for long-term investors amid ongoing economic uncertainties.
