Silver prices registered a steep fall on the Multi Commodity Exchange on February 5, marking one of the sharpest single-day declines in recent weeks. During intraday trade, silver slipped nearly nine percent to ₹2,44,654 per kilogram, reversing gains seen in earlier sessions. The sudden correction followed a period of heightened volatility in precious metals markets.
In the previous trading session, silver had settled at around ₹2,84,000 per kilogram on the MCX. The metal has seen wide price swings over the past few weeks, reflecting shifting global sentiment and changing expectations around interest rates. Earlier this year, silver had surged to an all-time high of ₹4,04,500 per kilogram on January 29 in the domestic market before entering a phase of sharp correction.
Gold prices also weakened alongside silver, adding to the cautious mood. On February 5, gold declined by more than one percent to trade at ₹1,51,127 per 10 grams for 24-carat purity. The simultaneous fall in both precious metals suggests a broader shift in investor positioning rather than metal-specific factors alone.
Analysts attribute the recent decline to profit booking after the sharp rally witnessed in January. As prices touched record highs, many investors opted to lock in gains, leading to selling pressure. In addition, movements in global bond yields, currency markets, and equity indices have influenced precious metal prices.
Silver, which has both industrial and investment demand, tends to experience sharper fluctuations than gold. Changes in outlook for industrial activity, especially in manufacturing and electronics, can significantly impact silver prices. Market participants are also watching global economic data closely, as any signs of stronger growth could reduce demand for safe-haven assets.
In the domestic retail market, silver prices varied across major cities such as Bengaluru, Chennai, Hyderabad, Mumbai, and Delhi, depending on local taxes and dealer margins. Despite the correction, prices remain elevated compared to historical averages, prompting cautious buying from consumers and jewellers.
Experts believe volatility in silver and gold prices is likely to persist in the near term. Uncertainty around global monetary policy, inflation trends, and geopolitical developments continues to shape investor sentiment. Some analysts expect further consolidation, while others caution that sharp moves in either direction cannot be ruled out.
Investors are advised to closely monitor global market cues and manage risk carefully when dealing in precious metals. With prices having moved sharply in a short span, disciplined investment strategies and awareness of market trends remain crucial.
