Silver Intraday Slump: MCX Rate Tumbles By Rs 8,000 From Record-High, ETFs Hit Day's Low — What To Expect

Silver Intraday Slump: Silver prices declined sharply on Wednesday, Jan. 7. as traders in global and domestic markets took to profit-booking ahead of key US economic data release and the US Federal Reserve decision. Silver ETFs also slumped, mirroring the intraday trend in the white metal.

The US dollar hovers near a more than two-week high, making greenback-priced metals more expensive for other currency holders. Yet, silver has had a bullish run since last year amid a growing structural supply-demand imbalance, constrained mine output, and rising industrial usage.

On the Multi Commodity Exchange of India (MCX), silver futures, due for a March 5 expiry, snapped a four-day rally, dropping over 3% to Rs 2,51,72 per kilogram. However, MCX silver futures hit a fresh record-high earlier today.

In the morning session, MCX silver futures soared by Rs 881, or 0.34%, to touch a new record of Rs 2,59,692 per kg. The March futures intraday slump shows that price crashed by Rs 8,000 per kilogram, however, the metal recovered in trade. On Tuesday, the precious metal surged by Rs 13,167, or 5.35%, to hit a new peak of Rs 2,59,322 per kg.

Spot silver has shed 2.3% to $79.40 per ounce, down from an all-time high of $83.62 hit on Dec. 29, 2025. Silver recorded its strongest annual gain in 2025, soaring over 147% on rising industrial and investor appetite.

Silver exchange traded funds also fell alongside MCX futures and spot prices. According to NSE data, SBI Silver ETF, Axis Silver ETF, HDFC Silver ETF, Tata Silver ETF, traded with marginal gains, from earlier rise in trade.

Silver ETF, ICICI Prudential Silver ETF, Nippon India, Motilal Oswal Silver ETF, UTI Silver ETF, and Zerodha Silver ETF also rose marginally. Market experts believe silver shows higher volatility than gold with a bubble-like behavior.

Federal Reserve Governor Stephen Miran said on Tuesday that aggressive US interest rate cuts are needed this year to keep the economy moving forward. On the other hand, Richmond Fed President Thomas Barkin said further interest rate changes will need to be "finely tuned" to incoming data. Wall Street is pricing in two benchmark interest rate cuts this year.

''December FOMC minutes suggest officials remain divided on timing and scale of rate cuts,'' said Kaynat Chainwala, AVP Commodity Research, Kotak Securities. Investors watch out for the ADP employment data due later in the day.

Market participants will also keenly watch out for US non-farm payroll data on Friday for further clues on monetary policy. The non-yielding assets such as gold and silver tend to perform well in low-interest-rate conditions and during periods of geopolitical or economic uncertainty.

Notably, the risk premium triggered by the US-Venezuela crisis has lifted the safe haven appeal of precious metals in trade after a historic run in 2025. Hence, gold and silver began the year on bullish sentiments.

''Silver's surge was buoyed further by China’s silver export controls and Trump’s threats to resource-rich nations like Greenland, Cuba, and Mexico following strikes on Venezuela, underscoring intensifying competition for critical resources,'' added Chainwala of Kotak Securities.

According to Peter McGuire, CEO of Trading.com Australia, silver could see sharp upside moves alongside increased swings. McGuire told NDTV Profit that he expects prices to reach $90–95 by the end of the month, with the potential to approach $100 in the first quarter. However, the market veteran warned that the rally is unlikely to be linear, with sharp pullbacks of 6–8% in a single day possible before a renewed upward momentum.