Silver is the big mover in trade overnight. Prices have finally stabilised after slumping 8.7% in the biggest one-day fall since August 2020. In fact, the year-end is proving to be highly volatile for silver. On MCX too, silver prices plunged to the Rs 2.25 lakh/kg level from a high of Rs 2.54 lakh/kg.
Most analysts believe that this correction in prices may have helped bring down some of the speculative trade in silver.
Let us look at the price rates of silver in different cities of India
Prices in India correct in sync with global trend
MCX silver prices generally follow global silver prices, moving in line with COMEX trends and currency changes.
Currently, silver prices in India are down 0.04%, with one kg trading at Rs 2,33,480/kg, while the price of 10 gram silver today is Rs 2,334.80.
For city-wise rates, the white metal is trading at Rs 233.76 per gram in Mumbai, followed by Delhi, where the silver rate is Rs 223.21 per gram, which is Rs 10.27 lower than the silver rate in Mumbai.
The silver rate in Chennai is Rs 224.25 per gram, while the silver rate in Hyderabad is Rs 223.95 per gram. The silver rate in Ahmedabad is Rs 223.89 per gram.
These differences in city-wise prices mainly arise from local taxes, transportation costs and demand levels.
So what exactly is driving these prices? Let’s take a look at the key triggers for the sharp correction in silver prices:
#1 Aggressive profit booking
Analysts added that aggressive profit booking by traders led to a crash in the prices of the white metal. Traders sold silver to lock in gains as prices had spiked. Further, trading volumes in the markets are relatively low because of the holiday season, which made silver rally higher than usual.
Commenting on the volatility, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, “Silver rose 2.6% to $73.9/oz, stabilizing after a steep drop in the previous session, as traders adjusted positions following aggressive profit-taking. The rebound follows a sharp retreat from record highs above $80 an ounce, with holiday-thinned liquidity amplifying recent price swings.”
#2 CME raises margins
Margin costs raised by the CME Group compelled traders to reduce their market positions, triggering a sell-off. The exchange hiked margins for the March 2026 derivatives contract to $25,000 from $20,000 earlier.
This essentially means traders now have to pay more to keep their contracts. Often, margin hikes are used by exchanges as a risk-control tool to manage volatility.
“Stricter margin rules may keep price gains measured in the short term. MCX Silver March may appreciate to Rs 226,000/kg as the undertone is bullish in the international markets,” Trivedi added.
#3 Easing geopolitical tensions
The meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy has eased geopolitical tensions between Russia and Ukraine, as both leaders said an end to the war is close. The Ukrainian president views the peace plans as 90% agreed following talks with Trump.
Easing geopolitical tensions ultimately reduce safe-haven demand for precious metals, thereby lowering demand.
