Silver posts biggest intraday correction in MCX history
Mumbai, Oct 18
Silver futures on the Multi Commodity Exchange (MCX) saw its biggest intraday correction, dropping 16,715 points from the session high to the low, nearly 10 per cent from their peak, before recovering to close with modest gains.
Silver futures reached a session high of Rs 1,70,415 per kilogramme, before slipping to an intraday low of Rs 1,53,700 on Friday, as global safe-haven demand eased, and finally closed at Rs 1,57,300, an increase of 0.44 per cent from the previous close.
Indian futures experienced a significant decline following a global sell-off, where US spot silver dropped by as much as 6 per cent during the day, marking its largest single-day drop in six months.
Even as silver recovered slightly to close down 4.75 per cent globally, after peaking at $54.63 and settling at $51.86 an ounce, analysts labelled the magnitude of correction was unprecedented. Analysts linked the pullback to reduced safe-haven demand as market anxieties diminished.
Analysts said that the easing of US credit concerns and China-US trade tensions following remarks from President Donald Trump played a significant role in the correction.
Stability in regional bank results, easing of liquidity crunch in silver in the London market and increasing bond yields pressured non-yielding assets such as precious metals.
MP Financial Advisory Services said earlier this week that despite gold reaching record levels, cultural demand will sustain gold ownership in India, and silver's function as an industrial input may drive its price over $50 per ounce.
"Thanks to industrial demand, silver has the required merits to cross over the $50 mark this time," the report said.
Silver prices rose from $24 an ounce to approximately $47 ounce from November 2022 to October 2025, bolstered by industrial demand in solar panels, electronics, and electric mobility.
— IANS
Reader Comments
Just bought silver jewellery for my sister's wedding last month. Thank god we purchased when prices were lower! This volatility shows how global factors affect our Indian markets. 🇮🇳
As someone working in the solar industry, I can confirm the industrial demand for silver is real. But such corrections are healthy for long-term growth. Silver will bounce back stronger! 💪
While the article mentions global factors, I wish it had more analysis on how this affects small Indian investors. Many middle-class families invest in silver as a traditional saving method.
MCX should have better risk management systems for such extreme volatility. Retail investors like me get wiped out in these sudden corrections. Regulators need to step up their game! 📉
Perfect buying opportunity! When everyone panics, smart investors accumulate. Silver's industrial applications in EVs and solar ensure long-term demand. Buying the dip! 🚀
Interesting to see how Trump's comments still move global markets years later. The interconnectedness of world economies is fascinating, even for precious metals trading in Mumbai.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.