Silver prices extended their sharp decline on Friday, wiping out all early-2026 gains as intense selling pressure gripped the market. The metal has now entered negative territory for the year, reflecting a deep correction after its record-breaking rally.
On the Multi Commodity Exchange (MCX), the March delivery silver futures contract slipped another ₹14,628 per kilogram during intraday trade to touch a low of ₹2,29,187. Prices are now testing this week’s low of ₹2,25,805. The week-to-date loss has widened to ₹27,852, or 10.52%, adding to last week’s steep fall of ₹28,453 per kilogram.
The ongoing sell-off marks a dramatic reversal for silver, which had surged to record highs above ₹4.20 lakh per kilogram in January 2026. The rally was driven by optimism over silver’s dual role as a safe-haven asset and a key industrial metal. However, prices are now struggling to find support.
From its peak, silver has corrected nearly 45.6% in just seven trading sessions, a decline more than twice the 17.35% fall recorded in gold over the same period, underscoring the metal’s higher volatility.
Why are silver prices correcting so sharply?
Explaining the steep correction, Akshat Garg, Head of Research & Product at Choice Wealth, said silver typically reacts more aggressively than gold due to its relatively smaller and thinner market.
According to Garg, silver prices had risen too quickly over a short period, with optimistic positioning already priced in. “When markets become stretched, even minor changes in global cues can trigger sharp corrections. A slightly stronger dollar and cooling global risk appetite are prompting investors to reduce exposure to more volatile assets,” he said.
Garg also pointed out that silver exchange-traded funds (ETFs) have seen sharp corrections as they closely track spot prices. During periods of heightened volatility and reduced liquidity, ETF prices can appear weaker. He added that the current move is largely driven by profit booking and price adjustment rather than any deterioration in silver’s underlying fundamentals.
Echoing similar views, Nirpendra Yadav, Senior Commodity Research Analyst at Bonanza, said such corrections are common after extended rallies. Broader risk sentiment and geopolitical developments often lead to profit booking in commodities, especially where market positioning becomes crowded.
What should investors do amid the volatility?
Market experts said the sharp fall does not warrant panic, even as they reiterated that silver is inherently volatile.
Yadav noted that industrial demand for silver remains robust, while global supply constraints and ongoing deficits continue to support prices over the medium to long term. He advised investors not to let short-term intraday movements influence their long-term outlook.
Garg also stressed that a single correction does not diminish silver’s long-term relevance. However, it highlights the importance of prudent position sizing. He recommended treating silver as a supporting allocation rather than a core portfolio holding.
For investors looking to enter the market, staggered buying is a more disciplined approach than lump-sum investments during volatile phases. Short-term traders, he added, should focus strictly on risk management, while long-term investors may benefit from patience rather than rushing to act.
Overall, analysts believe the ongoing decline is being driven by market positioning and global macro adjustments, not by a breakdown in silver’s long-term fundamentals.
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