Silver price crash: Rates on MCX in 15% lower circuit as commodities sell-off globally

Silver prices on the Multi Commodity Exchange of India (MCX) fell sharply on Friday (January 30), hitting the 15% lower circuit amid a global sell-off in commodities. The white metal, which had surged nearly 9% to an all-time high of ₹4.20 lakh per kg on Thursday (January 29), settled at ₹3.99 lakh per kg.

Analysts attributed the decline to profit-booking following recent all-time highs and a rebound in the US dollar.

"After hitting record highs, gold and silver prices dropped as a rebound in the US dollar triggered aggressive profit-taking," said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.

He added that domestic prices fell more sharply than international benchmarks in the previous session, raising concerns over price parity.

Globally, Comex silver futures

for April delivery dropped nearly 4% to $110.26 per ounce after touching a record $121.78 per ounce in the previous session.

According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, "Silver retreated from its all-time high as investors locked in profits, while the rebound in the dollar added pressure on the metal." He noted that despite the pullback, silver remains on track for a monthly gain of over 50%, marking its strongest January performance on record.

Rajkumar Subramanian, Head – Product & Family Office at PL Wealth, highlighted the longer-term context, noting that silver prices in India have risen from ₹1.5–1.6 lakh per kg in early 2025 to above ₹4 lakh per kg in January 2026, representing a roughly 165–170% gain over 12 months.

Subramanian added that the rally reflects a mix of safe-haven demand, tight supply, and rising industrial consumption in sectors such as solar, electronics, and manufacturing. He cautioned, however, that silver remains volatile, recommending calibrated, staggered investments to manage near-term price risks.

Despite the sharp correction, analysts said gold and silver continue to benefit from underlying economic and geopolitical uncertainties, supporting strong longer-term investor interest.