Silver Price Today: Silver prices came under intense selling pressure on Thursday, tumbling by as much as Rs 10,000 during intraday trade. After settling at Rs 2,50,605 per kg on Wednesday, March 2026
silver futures on the MCX slid to an intraday low of Rs 2,40,605.
By noon, the contracts were quoting at Rs 2,43,911, down Rs 6,694 or 2.67 per cent from the previous close, underlining heightened volatility in the precious metals space.
The decline was exacerbated by the annual rebalancing of key commodity benchmarks, including the Bloomberg Commodity Index. This routine exercise, which realigns fund weightages based on the prior year’s price performance, has turned into a major market-moving factor this time due to the sharp rally in precious metals through 2025.
Passive funds tracking these indices have started unwinding silver positions from Thursday to align with the new weightings, with gold witnessing similar outflows.
The sharp correction comes after silver’s record rally in December 2025, when prices touched an all-time high of USD 83.60 per ounce amid tight supply conditions.
However, HSBC, in its latest report, warned that silver’s momentum may be fading, cautioning that prices have reached “unsustainable levels amid high volatility.”
While gold continues to draw strength from its safe-haven appeal, HSBC said silver’s fundamentals — especially industrial and jewellery demand — are showing signs of stress.
Silver outlook for 2026: Volatility likely as supply rises, demand softens
HSBC’s 2026 outlook flags several headwinds that could limit silver’s longer-term upside.
The bank has raised its average price forecast for 2026 to USD 68.25 per ounce from an earlier estimate of USD 44.50 per ounce, but expects prices to retreat to USD 57.00 per ounce in 2027. By 2029, silver is projected to cool further to around USD 47.00 per ounce.
Although a weaker US dollar and institutional buying may support prices in the near term, HSBC noted that industrial demand is easing, while jewellery consumption remains muted due to elevated prices.
On the supply front, the report highlighted a steady rise in mine production, aided by byproduct recovery and higher recycling. Silver’s supply deficit, estimated at 230 million ounces in 2025, is expected to narrow to 140 million ounces in 2026 and further to 59 million ounces in 2027.
These shrinking deficits, along with growing above-ground inventories, could cap long-term gains.
Overall, HSBC said silver may remain volatile in the near term, supported by institutional flows and coin and bar demand, but questioned the sustainability of the rally amid shifting demand and supply dynamics.
