Did Silver Just Experience Its Largest Intraday Correction in MCX History?
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Synopsis
Silver futures on the MCX have made headlines with an extraordinary intraday correction, slumping 16,715 points. What led to this dramatic shift, and what does it mean for the future of silver? Dive into the factors influencing this market volatility and the implications for investors.
Key Takeaways
- MCX silver futures experienced a record intraday correction.
- Silver prices dropped nearly 10 percent from their peak.
- Global market conditions significantly influence commodity prices.
- Industrial demand is critical for silver's future pricing.
- The correction reflects broader economic trends.
Mumbai, Oct 18 (NationPress) Silver futures on the Multi Commodity Exchange (MCX) recorded an unprecedented intraday correction, plunging 16,715 points from the session's peak to the low, nearly 10 percent off the high, before rebounding to close with slight gains.
The futures peaked at Rs 1,70,415 per kilogram before falling to an intraday low of Rs 1,53,700 on Friday, driven by a decline in global safe-haven demand, ultimately closing at Rs 1,57,300, reflecting a 0.44 percent increase from the previous close.
Indian futures faced a notable downturn following a global market sell-off, with US spot silver plummeting by as much as 6 percent during the day, constituting its largest single-day decline in six months.
Despite a slight recovery leading to a 4.75 percent global decrease in silver prices, which peaked at $54.63 and settled at $51.86 an ounce, analysts characterized the extent of the correction as extraordinary. The downturn was attributed to a decrease in safe-haven demand as market tensions eased.
Analysts indicated that improving US credit conditions and the de-escalation of China-US trade tensions following comments from President Donald Trump significantly influenced the correction.
Stability in regional bank earnings, alleviation of the liquidity crisis in the London silver market, and rising bond yields have exerted pressure on non-yielding assets like precious metals.
MP Financial Advisory Services noted this week that even with gold hitting record highs, cultural demand will sustain gold ownership in India, and silver's role as an industrial input could propel its price beyond $50 per ounce.
“Thanks to industrial demand, silver possesses the potential to surpass the $50 threshold this time,” the report stated.
From November 2022 to October 2025, silver prices surged from $24 an ounce to around $47 an ounce, driven by industrial demand for solar panels, electronics, and electric mobility.
Point of View
It's crucial to recognize that the recent fluctuations in silver prices reflect broader economic trends. This correction not only showcases the volatility of commodity markets but also emphasizes the importance of understanding market dynamics, which are influenced by global events and investor sentiment.
NationPress
18/10/2025
Frequently Asked Questions
What caused the significant drop in silver prices?
The drop was primarily due to a decrease in global safe-haven demand, easing US credit concerns, and alleviated trade tensions between the US and China.
Is this correction unprecedented?
Yes, the magnitude of this intraday correction is considered unprecedented in the history of the MCX.
What does the future hold for silver prices?
Analysts suggest that despite this correction, industrial demand could drive silver prices above $50 per ounce in the coming months.
How does this correction affect Indian investors?
Indian investors may experience fluctuations in their portfolios, but the cultural demand for gold and silver in India may support long-term values.
What role does industrial demand play in silver pricing?
Industrial demand, particularly for applications in solar panels and electronics, is a significant factor driving silver prices upward.
