Global Silver Prices Experience Significant Decline After Record Highs

Silver prices in global markets have sharply declined after reaching record highs of $84 per ounce. The drop, attributed to profit booking, interrupted a potential seventh consecutive day of gains. Analysts highlight that thin holiday trading has intensified price fluctuations, while geopolitical tensions and expectations of US monetary easing continue to support the market. With three trading sessions left in 2025, silver is on track for its best annual performance since 1979. Explore the latest insights into the silver market and its future trends.

By Narendra Chaudhary Dec 29, 2025, 13:04 IST

Silver Prices Retreat After Hitting New Records

Mumbai, Dec 29: Silver prices in international markets saw a notable drop after reaching new intraday highs of $84 per ounce on Monday.

The white metal experienced a decline of nearly 8 percent from its peak, primarily due to strong profit-taking, which interrupted what could have been a seventh consecutive day of increases.

On the MCX, March silver futures were trading up 4.22 percent intraday (as of 10:10 AM), priced at Rs 2,49,282 per kilogram. Globally, futures had surged to an intraday high of $82.67 an ounce in early trading, marking a 7 percent increase following an 11 percent rise on Friday—the largest single-day gain since 2008.

This price surge has continued a rally that has surpassed even the significant supply constraints observed in October.

Market analysts noted that the thin trading volume during the holiday season intensified the price fluctuations, as lower volumes can lead to exaggerated price movements. The rally is being supported by tighter inventories and quickly evaporating liquidity.

Unlike gold, silver does not have a reserve backing it, as the London gold market is supported by approximately $700 billion in bullion that can be lent during liquidity crises.

Despite silver's impressive rise of about 180 percent in 2025, with three trading sessions remaining, it is poised for its best annual performance since 1979, when gains exceeded 200 percent.

According to Rahul Kalantri, VP Commodities at Mehta Equities Ltd., "A declining dollar index, expectations of rate cuts by the Fed, and escalating geopolitical tensions have fueled the rally. The dollar index has fallen for five consecutive weeks amid hopes for further monetary easing in the US. Renewed tensions between the US and Venezuela have also increased safe-haven buying."

Additionally, China's proposed silver export restrictions set to take effect in January 2026 have contributed to the sharp rally in silver, while ongoing global uncertainties continue to drive investment towards precious metals.

“Silver has support levels at Rs 2,38,810-Rs 2,37,170 and resistance at Rs 2,41,810- Rs 2,43,470," he added.