Silver Price Falls 16% from Record High – Buying Opportunity or Deeper Correction Ahead?

Silver price extended its decline on Monday, October 27, following renewed optimism about a potential US–China trade agreement and strength in the US dollar. On the Multi Commodity Exchange (MCX), December silver futures dropped to ₹146,241 per kilogram, a sharp 16% correction from this year’s record high of ₹170,415 per kilogram.

Rising confidence in trade negotiations encouraged investors to move toward riskier assets, reducing demand for safe-haven metals such as silver and gold. A stronger greenback further weighed on prices, prompting traders to lock in profits after the metal’s powerful two-month rally.

Short-Term Correction May Continue

Market experts believe silver’s recent weakness is a natural cooldown after an intense bullish run. Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, said silver slipped below $48 per ounce due to heavy profit-taking. The optimism surrounding trade talks among the United States, China, and India also contributed to the price decline.

Analysis of why silver and gold prices are retracting after recent highs—and what this means for investors going forward.

Traders now look ahead to major central bank decisions this week. The Federal Reserve is expected to cut interest rates by 25 basis points, while the European Central Bank (ECB) and Bank of Japan (BOJ) are likely to maintain their current stance. These announcements could spark volatility in precious-metal markets.

Silver Price Outlook: Short-Term Pressure, Long-Term Strength

Jigar Trivedi, Senior Research Analyst at Reliance Securities, recommends caution in the short term, citing elevated valuations. He expects MCX silver prices could test ₹135,000 per kilogram if global weakness continues. “Investors should consider taking partial profits or tightening stop-loss levels,” Trivedi advised.

However, analysts remain optimistic about silver’s long-term potential. Growing industrial demand, particularly from clean-energy and electric-vehicle sectors, combined with a supportive low-interest-rate environment, could lift prices over the next year. Trivedi and Kalantri both see silver trading between $47 and $50.50 per ounce, with strong domestic support around ₹142,400 per kilogram.

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