Silver prices have experienced a severe downturn, plummeting by over ₹1 lakh within just two days as commodity markets faced significant pressure both in India and globally. This sharp decline comes amid a broader selloff in metal markets, creating substantial volatility for investors and traders.
Record Intraday Crash Followed by Budget Day Slide
On Friday, silver prices witnessed an unprecedented intraday collapse of more than 36%, marking one of the most dramatic single-day declines in recent memory. This crash was primarily triggered by a strengthening US dollar following former President Donald Trump's nomination of Kevin Warsh as the new Federal Reserve Chair.
The downward spiral continued on Saturday as trading commenced on Budget 2026 day. Silver prices on the Multi Commodity Exchange (MCX) crashed an additional 9%, compounding the previous day's losses and creating a perfect storm for precious metal investors.
Current Market Scenario
As of 9:30 am today, MCX silver prices had fallen 9% to trade at ₹2,65,652. This represents a staggering decline of nearly ₹30,000 compared to the previous session's closing price, highlighting the intense selling pressure in the market.
Silver Rates Across Major Indian Cities
In the physical retail market, silver prices vary across different cities. According to data from bullions.co.in, here are the current silver rates as of 10 am on 1 February:
- Delhi: ₹2,431 for 10 gm, ₹24,315 for 100 gm, ₹2,65,540 for 1 kg
- Jaipur: ₹2,659 for 10 gm, ₹26,596 for 100 gm, ₹2,65,960 for 1 kg
- Mumbai: ₹2,659 for 10 gm, ₹26,599 for 100 gm, ₹2,65,990 for 1 kg
- Kolkata: ₹2,656 for 10 gm, ₹26,564 for 100 gm, ₹2,65,640 for 1 kg
- Chennai: ₹2,632 for 10 gm, ₹26,328 for 100 gm, ₹2,66,770 for 1 kg
- Bengaluru: ₹2,662 for 10 gm, ₹26,620 for 100 gm, ₹2,66,200 for 1 kg
- Hyderabad: ₹2,716 for 10 gm, ₹27,167 for 100 gm, ₹2,71,670 for 1 kg
- Nashik: ₹2,712 for 10 gm, ₹27,124 for 100 gm, ₹2,71,240 for 1 kg
- Rajkot: ₹2,665 for 10 gm, ₹26,658 for 100 gm, ₹2,66,580 for 1 kg
- Pune: ₹2,712 for 10 gm, ₹27,125 for 100 gm, ₹2,71,240 for 1 kg
Factors Driving the Silver Price Collapse
Market analysts and traders attribute today's steep correction in silver prices to multiple converging factors. The aggressive unwinding of long positions has created substantial downward momentum, exacerbated by heightened volatility in global markets.
Additionally, cautious investor sentiment ahead of the Union Budget presentation has contributed to the selling pressure. Market participants are adopting a risk-off approach, reducing exposure to volatile assets like silver as they await policy announcements that could significantly impact commodity markets.
Key Market Insights
- Silver prices demonstrate extreme volatility, often influenced by global market conditions and shifting investor sentiment.
- The Union Budget presentation represents a critical event that can dramatically affect commodity prices, including precious metals like silver.
- Monitoring silver rates across various cities provides valuable insights for investors seeking to make informed decisions about entry and exit points.
- The current market environment underscores the importance of risk management strategies for commodity investors.
This unprecedented decline in silver prices serves as a stark reminder of the inherent volatility in commodity markets. As investors navigate this turbulent period, attention remains focused on both global economic developments and domestic policy announcements that could further influence precious metal prices in the coming days.
