Losing The Shine: Silver Tumbles 17% From Lifetime High — What Key Support Levels Indicate

After a record-breaking rally earlier this month, silver prices have sharply reversed course, tumbling by more than 16% from the all-time within just 10 days.

On Monday, Silver future traded on India's Multi Commodity Exchange (MCX) hit a day’s low of Rs 1,41,780 per kilogram, slipping around 17% from its lifetime high of Rs 1,70,415, recorded on Oct. 17. The correction marks one of the steepest short-term declines in recent months, raising questions about the metal’s near-term direction.

Silver has now breached two key support levels, as shared by Kotak Securities. The first support stood at Rs 1,43,375, followed by Rs 1,41,961 — both of which were crossed in recent sessions. The brokerage has identified the next critical support at Rs 1,37,381, representing a nearly 20% discount from the record high.

In the US spot market, a similar downtrend could be seen. Prices dropped to $46.31 per ounce, down 4.7% in a single session and 16.2% below the all-time high of $54.49. Kotak’s key support levels for spot silver were pegged at $47.08, $46.63, and $45.15, two of which have now been tested or breached.

Market analysts attribute the sell-off to easing supply concerns and rising US bond yields, which have boosted the dollar and dampened demand for precious metals.

“A brief relaxation of supply concerns and higher US bond yields contributed to the fall,” said Dr Renisha Chainani, Head of Research at Augmont. “However, the long-term outlook for silver remains positive due to growing industrial demand from the electric vehicle and solar photovoltaic sectors. Prices are expected to consolidate within this range, and a breakout on either side could move prices 3–4% higher or lower.”

Adding to the cautious sentiment, Rahul Kalantri, Vice President (Commodities) at Mehta Equities Ltd., noted that the recent correction followed an unusually strong rally.

“After an exceptional two-month bull phase silver prices experienced significant selling pressure last week,” Kalantri said. “The pullback was primarily driven by a stronger dollar index and encouraging developments in US trade negotiations with China and India. Sentiment was further influenced by the Gaza peace progress, leading to profit-taking across the board.”

Despite the recent slide, jewellers expect renewed buying interest as the Indian wedding and festive season gathers pace, especially if prices stabilise near current levels.

For now, silver appears to be consolidating after its meteoric rise, with traders watching the Rs 1,37,000 zone closely for signs of either a technical rebound or a further correction in the days ahead.