Silver Stages Sharp Recovery; Jumps Over 4% to Rs 2.34 Lakh/Kg in Futures Trade

Silver prices staged a strong comeback, surging by over 4% to ₹2,34,019 per kg in futures trade on Tuesday after witnessing a steep fall as traders adjusted positions following aggressive profit-booking from record highs.

On the Multi Commodity Exchange (MCX), silver futures for March 2026 delivery soared by ₹9,590, or 4.27%, to ₹2,34,019 per kilogram in a business turnover of 11,915 lots.

The white metal had skyrocketed by ₹14,387, or 6%, to touch a record high of ₹2,54,174 per kilogram on Monday. Later, heavy profit-booking by investors dragged prices lower by ₹15,358, or 6.40%, to close at ₹2,24,429 per kg.

"Silver prices rose on Monday, stabilising after a steep drop in the previous session, as traders adjusted positions following aggressive profit-taking. The rebound came after a sharp retreat from record highs, with holiday-thinned liquidity amplifying recent price swings," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Gold futures, too, witnessed robust buying on the MCX. The yellow precious metal for February contract jumped by ₹826, or 0.61%, to ₹1,35,768 per 10 grams in 15,953 lots.

In the international markets, gold futures for February delivery traded higher at USD 4,380.70 per ounce, up by USD 37.10, or 0.85%, on the Comex.

Silver futures also rebounded on value buying after a sharp decline. The white metal for March 2026 contract gained USD 3.44, nearly 5%, to USD 73.90 per ounce.

On Monday, silver had hit a lifetime high of USD 82.67 per ounce in overseas trade before tumbling by USD 6.73, or 8.73%, to close at USD 70.46 per ounce.

Trivedi said the recent sell-off was amplified by the CME group's decision to raise margin requirements on silver futures, forcing leveraged traders to reduce exposure after prices became technically overstretched.

The US-based CME Group, a global marketplace for derivatives trading that operates exchanges such as CME, CBOT, NYMEX, and COMEX. It provides trading in futures and options across energy, agricultural commodities and metals, including gold and silver.

"The decline reflected position unwinding rather than a shift in underlying demand. Despite near-term volatility, silver continues to find support from structural supply constraints and strong industrial demand, particularly from solar, electronics, and data centre infrastructure," Jigar Trivedi of Reliance Securities said.

However, he cautioned that stricter margin rules may keep price gains measured in the short term.

"MCX silver futures for March delivery may appreciate as the undertone is bullish in the international markets," Trivedi said.