Silver Rate Today: COMEX Silver Slumps 35% From Record High as CME Margin Hike Fuels Bearish Outlook
Silver rate today: COMEX silver prices ended sharply lower on Friday, closing at $78.832 per ounce, more than 35% below their lifetime high of $121.755 per ounce. The steep decline comes amid one of the sharpest corrections in the precious metals market in decades, triggering concerns of further downside in the white metal.
Precious metals see historic correction
Precious metals witnessed heavy profit-booking on January 30, 2026, after an explosive rally earlier this month pushed prices to record highs. Gold prices in the international market fell by over 11%, while COMEX silver plunged more than 31% in a single session. Despite the correction, silver prices remain elevated compared to historical averages, leading analysts to warn that the sell-off may not be over yet.
What triggered the sharp fall in silver prices?
According to Ponmudi R, CEO at Enrich Money, the sharp correction was triggered by a major shift in global macro sentiment following the nomination of Kevin Warsh as the next US Federal Reserve Chair.
Warsh’s reputation for a hawkish stance on inflation and emphasis on Federal Reserve independence led to a stronger US dollar and higher real yields. As a result, leveraged positions in gold and silver were rapidly unwound, causing aggressive liquidation across precious metals markets. Experts describe the move as a classic transition from market euphoria to exhaustion, rather than the start of a long-term bear market.
CME raises margins on gold and silver
Adding to the pressure, the Chicago Mercantile Exchange (CME) announced a hike in margin requirements for precious metals futures.
According to Anuj Gupta, SEBI-registered commodity expert, CME increased gold margins from 6% to 8%, while silver margins were raised from 11% to 15%. Higher margin requirements increase trading costs, often forcing smaller traders to reduce exposure, which can intensify selling pressure during volatile periods.
The revised margins will come into effect from Monday’s close, following a routine volatility review by the exchange.
Indian jewellery demand adds to downside risk
Anuj Gupta also highlighted that India’s jewellery sector is facing a double impact from elevated gold and silver prices and sluggish consumer demand. Market participants are now watching the Union Budget 2026, where expectations of an import duty cut could further weigh on precious metal prices if announced.
Silver prices may fall another 30%
On the outlook, Amit Goel, Chief Global Strategist at Pace 360, said the probability of the silver rally topping out has increased significantly after the recent breakdown in prices.
He noted that if silver fails to recover key levels early next week, selling pressure could intensify once US markets open. While long-term industrial demand remains intact, Goel believes silver prices are still trading above fair value.
He expects up to a 30% further correction, projecting international silver prices to potentially fall toward $50 per ounce by June 2026. In India, MCX silver prices, currently near ₹2.92 lakh per kg, could slide toward ₹2 lakh per kg over the same period, he added.
Why higher margins matter
CME’s margin hike means traders must deposit more collateral to hold futures positions in gold, silver, platinum, and palladium. While such adjustments are common during periods of extreme volatility, the move could further squeeze liquidity and push smaller market participants out, potentially amplifying near-term price swings.
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