Silver slips by Rs 8,000 after hitting a record high of Rs 2,59,692 — What experts suggest traders should do

Silver prices dropped sharply on Thursday as strong selling pressure hit the market. The fall came ahead of the annual rebalancing of global commodity indexes and the release of important US economic data.

On the Multi Commodity Exchange (MCX), silver slipped nearly 3.5 per cent and fell below Rs 2,42,000 per kilogram during the session. Experts said that many passive investment funds are cutting their holdings in precious metals futures to match new index weightings. This has added heavy selling pressure in gold and silver.

Market players also said that silver and gold had risen strongly in recent months. Because prices touched record highs, many investors booked profits, which pushed prices down further.

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Silver rates on MCX

In the previous session, MCX silver had already fallen by Rs 11,700 per kilogram, touching a low of Rs 2,47,100. At present, silver is trading near Rs 2,42,330 per kg, which is almost Rs 18,000 lower than its all-time high of Rs 2,59,692 per kg made on January 7, 2026. And silver has fallen by more than Rs 8,000 intraday.

In the international market, silver is trading near $75.79 per troy ounce, down about 2.11 per cent. On the global market and COMEX, prices have slipped below $76 per troy ounce.

After touching a record high yesterday (7 January, 2026), the question for investors is why silver is seeing such a sharp fall.

Why are silver prices falling?

According to Devya Gaglani, Axis Securities, the main reason for the fall is the Bloomberg Commodity Index rebalancing. Due to this, nearly $5 billion worth of selling is expected across commodity markets.

He also said that profit booking at record highs has added to the pressure. When prices rise very fast, traders usually lock in profits, which causes prices to fall.

Price Strategy: Gaglani said that as long as silver stays below $82 per troy ounce, the market view remains “sell on rise.” If prices move closer to $70 per troy ounce, fresh buying interest may come from investors.

Silver Outlook: Volatility likely to continue this week

Vandana Bharti, SMC Global, said that rebalancing has started from today, and positions are now getting adjusted in the market. Since rebalancing usually runs for a full week, silver prices may remain highly volatile.

She added that silver may see a correction after the recent strong rally. If the international price breaks $72, silver could fall toward the $68–69 zone. A close below $72 will be very important to watch. On MCX, silver may test levels near Rs 2,34,000 per kg in the short term.

ICICI Direct report on silver

According to a report by ICICI Direct, silver has already jumped nearly 170 per cent in 2025, so some cooling and consolidation are expected. The report says the risk-reward is not good at higher levels, and industrial demand may slow.

Buying Range (MCX): Fresh buying may be better in the Rs 1,50,000– Rs 1,65,000 per kg range.

Global Outlook of Silver: Silver prices may correct to $55–60 per ounce before rising again. By year-end, MCX silver could move toward Rs 2,60,000– Rs 2,75,000, while global prices may reach $85–90 per ounce.

Is this a buying opportunity in silver? What ICICI Direct’s Saif Mukaddam says

Saif Mukaddam of ICICI Direct said silver has already given nearly 150 per cent returns, making it a very volatile commodity. High prices and global uncertainty may keep industrial demand flat in 2026. He also noted that higher margin requirements by exchanges have forced traders to close positions, adding to selling pressure.

He believes silver may correct further, but long-term strength remains if prices hold the $55 support level. Investors can slowly accumulate on dips for the long term.

Mukaddam added that silver could reach the Rs 1,50,000– Rs 1,65,000 zone within 6 months to one year, possibly by June.