Silver’s Record Run Paused? Precious Metal Dips Over 3% From Record Highs On MCX - Know What Investors Should Do

MCX Silver Price Today: Silver futures have given stellar returns in the current calendar year. Earlier last week, silver prices surged to a fresh high on the Multi-Commodity Exchange (MCX). On December 12, MCX Silver Futures with March 5, 2026 expiry surged to an all-time high level of Rs 2,01,615 per kilogram. However, in today’s trade, silver prices have witnessed a dip of more than 3 per cent from the all-time high levels.

MCX Silver Dips Over 3 Per Cent From Record High

On December 16, the price of MCX Silver fell by 3.64 per cent to Rs 1,94,260 per kg level compared to the all-time high level hit on December 12. At the time of writing, the price of MCX Silver was around Rs 1,96,860.00 per kg, down by Rs 1041 or 0.53 per cent compared to the previous close. The price of physical silver in the Indian market also witnessed a dip as the price of 1 kg of silver fell by 2.4 per cent to Rs 1,99,100 from the record high level of Rs 2,04,000 per kg attained on December 12. The spot price of silver also dipped significantly by more than 2 per cent from the record high price of $64.66 per troy ounce to $62.96 per troy ounce.

Why Are Silver Prices Declining?

The declines followed likely profit booking from investors post the record highs. Silver has witnessed a historic rally in 2025 with prices surging by over 100 per cent. Following the surge to all-time highs, institutional and retail investors are likely to have engaged in "profit booking," with traders selling off positions to lock in gains. Profit booking tends to put downward pressure on the price.

The profit booking indicates a change in investor sentiment towards caution ahead of the release of key US macroeconomic data, such as the US non-farm payrolls report. Notably, the data is expected to provide fresh cues on the US Federal Reserve's interest rate trajectory. Silver prices are likely to have felt pressure on account of declines in gold prices as well. In today’s trade, MCX Gold Futures with March 5, 2026 expiry also saw a sharp decline (dropping roughly 0.61 per cent to around Rs 1,33,308 per 10 grams. Weakness in the broader bullion market is likely to have dragged silver prices down alongside gold.

On the other hand, reports suggesting potential progress in peace deals between Russia and Ukraine are also likely to have slightly reduced the demand for "safe-haven" assets such as gold and silver. Earlier on December 15, American officials stated that a peace deal between Russia and Ukraine was ‘nearly complete’ according to a report by business news platform CNBC. Aamir Makda, Commodity and Currency Analyst at Choice Broking, told Outlook Money that investors have now switched to a ‘wait and watch’ mode amid reduced panic around trade tariffs and easing geopolitical tensions.

“Additionally, the initial “tariff-panic" that sparked aggressive buying has settled into a cautious "wait-and-see" approach as investors look for clarity on 2026 trade policies,” Makda said.

Makda added that recent signals from the US Federal Reserve, which indicate less likelihood of a rate cut have increased the appeal of yield-generating assets for institutional investors. This is likely to have added to the selling activity witnessed on December 15 and December 16.

“Recent signals from the FOMC regarding a potential pause in rate cuts have dampened investor sentiment. Because silver is a non-yielding asset, the prospect of interest rates remaining "higher for longer" increases the opportunity cost of holding the metal. This has prompted institutional investors to scale back their positions in favour of yield-bearing assets,” Makda said.

What Should Investors Do?

Makda told Outlook Money that the current correction is not a cause for panic. He added that the precious metal recently entered the ‘overbought’ territory.

Overbought refers to technical indicators suggesting that the commodity’s price has risen too far, too fast, indicating strong upward momentum but also a potential for a short-term price correction, as it might be temporarily trading above its real value. He added that the correction is a healthy development.

“From a technical standpoint, silver recently entered "overbought" territory. A correction of 3–5 per cent is not only expected but viewed as a healthy development. This pullback allows the market to reset, flushing out speculative excess and building a more sustainable foundation for a long-term bullish trend,” Makda said.

Makda said that investors with a 6 to 12-month horizon can use the current dip to add to their holdings in silver. However, he cautioned against initiating such a trade if MCX Silver reaches around the Rs 1,79,600 and waits for further corrections.

“This correction is an ideal opportunity to initiate a long position in Silver. Although recent price levels are still far from the support area on the daily chart. Key support would be at the 20-DEMA level placed at Rs. 179,600. Here, traders are advised not to go long in Silver all at once and should make a partial purchase from the current level and should add more once the price corrects towards the support level,” Makda said.