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Silver rate today: Silver prices on Multi Commodity Exchange (MCX) have witnessed an extreme downfall in the past three sessions, as white metal has crashed over ₹1,50,000 from the record high level of ₹4,20,000.

In a special session on Sunday, February 1, the white metal plunged over 9% lower circuit, with the March contract plunging ₹26,273 to ₹2,65,652 per kilogram.

The MCX opened for trading for a special session on Sunday as Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2026-27.

On Friday, the white metal had already tumbled ₹1,07,968, or 27%, to settle at ₹2,91,925 per kg, also touching the lower circuit. The steep decline followed Thursday’s record high of ₹4,20,048 per kg.

According to market experts, the sharp drop in bullion prices is due to heavy unwinding of long positions amid heightened global market volatility and cautious investor sentiment ahead of the Union Budget presentation.

Structural long-term drivers—including central bank purchases, the erosion of fiat currency value, widening government fiscal deficits, and growing silver demand from EV, AI, and renewable energy industries—continue to remain in place.

Meanwhile, according to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, the bullion industry had expected a cut in import duty on gold, GST rationalisation, export incentives and extended credit support.

“The Budget announced capital gains tax exemption on RBI Sovereign Gold Bonds, applicable only to original subscribers, not to secondary market buyers, while there were no announcements of any meaningful reduction in gold import duty or GST reforms,” Kothari said.

Ponmudi R, CEO of Enrich Money, believes that MCX Silver futures have seen an extreme volatility-driven reversal after posting record highs near ₹4,20,000, followed by a near-vertical collapse toward ₹2,65,000, confirming blow-off top behaviour.

“The breakdown invalidates the steep bullish channel, and signals panic unwinding of leveraged long positions. Momentum indicators have flipped from extreme overbought to oversold within a very short span, highlighting structural instability rather than a healthy correction. The ₹2,60,000– ₹2,55,000 zone is now a critical demand area; failure to hold may open bigger corrective risk. Any pullback toward ₹3,00,000– ₹3,10,000 is expected to attract selling pressure. The trend remains bearish-biased in the short term, with volatility expected to stay elevated,” Ponmudi said.

Meanwhile, Akshat Garg, Head Research & Product of Choice Wealth, said that this isn't a panic moment for investors.

“Gold and silver are portfolio hedges, not trading bets. If your allocation is sensible, staying put makes sense. If anything, staggered buying during corrections works better than chasing rallies. Volatility hurts emotions, not long-term plans,” Garg said.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

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