Silver Prices See Historic 10% Intraday Crash — Biggest Correction Since Inception on MCX

Mumbai: Silver prices witnessed a historic correction on Thursday, marking the steepest single-day intraday fall since the metal began trading on India’s Multi Commodity Exchange (MCX).

On October 17, silver futures crashed 16,715 points, plunging nearly 10% from the day’s high before managing a partial recovery. Prices had earlier touched an all-time high of ₹1,70,415 per kg during the session but later tumbled sharply to an intraday low of ₹1,53,700, as per data from Anuj Gupta, Director at YA Wealth Global.

Despite the massive volatility, the white metal managed to close at ₹1,57,300 per kg, up 0.44% from Wednesday’s close, highlighting the extreme price swings in the bullion market.

Globally, US spot silver mirrored the sell-off, falling as much as 6%, its largest one-day drop in six months. It later trimmed losses to end 4.75% lower, settling at $51.86 per ounce after hitting a session high of $54.63.

According to Gupta, the sharp intraday plunge of 16,715 points is “unprecedented in silver’s trading history.” He attributed the volatility to multiple macroeconomic triggers that temporarily eased global safe-haven demand.

“Concerns over US credit quality and easing China-US trade tensions after comments from President Donald Trump helped stabilize global markets,” Gupta explained.
“A rebound in regional bank stocks lifted market sentiment and pushed bond yields higher. Rising yields typically weigh on gold and silver, which are non-yielding assets,” he added.

Additionally, signs of easing in the London silver squeeze prompted widespread profit-taking among investors who had accumulated large speculative positions in recent weeks.

The sell-off wasn’t limited to silver. Gold prices also corrected sharply, with US spot gold falling 3% to $4,186.4 an ounce. On MCX, gold futures slipped nearly 5% from their day’s high of ₹1,32,294 per 10 grams to ₹1,25,957, though they closed slightly higher at ₹1,26,650, up 0.25%.

The broader decline in precious metals reflected investors’ shift toward riskier assets as global equities rebounded and bond yields rose, reducing the appeal of non-yielding safe-haven investments.

Originally published on newsworldstime.com.