Silver's Price Mystery: Why the Metal Fell 8% From Its Peak

Silver future prices experienced a significant decline on its last trading day on MCX on October 17, dropping nearly 10 per cent from session highs.

Metal prices fell from a session high of Rs 1,70,415 per kilogramme to a low of Rs 1,53,700, before closing at Rs 1,57,300, marking a 0.44 per cent increase from the previous close.

Global prices declined from a record high of nearly $54 an ounce to approximately $51.50, marking a 6 per cent decrease.

Analysts attributed the decline to reduced safe-haven demand following a softening of US-China trade tensions, as US President Donald Trump admitted that proposed additional tariffs were unsustainable.

Broking firm Motilal Oswal said that the metal is currently exhibiting dynamics consistent with a major structural revaluation, distinguishing the current rally from previous speculative cycles.

The brokerage noted that the metal's volatility, at approximately 1.7 times faster than gold in either direction, confirms that the current rally is fundamentally stronger than speculative bursts seen in 1980 or 2011.

The metal's extensive use in manufacturing has increased the demand and driven up prices. 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 earlier in this week said that the 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