Silver rate today witnessed a sharp reversal, jolting investors who were riding a strong rally over the past few sessions. After two days of gains, silver prices fell hard on Thursday, February 5, as profit booking kicked in amid a stronger dollar and easing geopolitical concerns. Gold prices followed the same path, adding to the pressure across precious metals.
What looked like a smooth upward move has suddenly turned choppy. The fall wasn’t gradual. It was fast, deep, and broad-based—both in domestic and international markets.
Market Performance: Silver Rate Today Under Heavy Pressure
The slide in the silver rate today was visible across platforms, with both Indian and global benchmarks reporting steep losses.
- Silver on MCX fell 9%, hitting an intraday low of ₹2,44,654 per kg
- Gold on MCX dropped around 3% to ₹1,48,455 per 10 grams
- COMEX silver prices crashed over 16% to $73.415 per ounce
- COMEX gold prices declined 3.6% to $4,805 per ounce
In early Asian trade, silver briefly attempted to hold ground but soon lost momentum. Prices slipped more than 15% intraday, highlighting the sudden surge in volatility. Gold also weakened, sliding over 3% to $4,971.55 per ounce.
The broader takeaway is clear. The momentum that pushed precious metals to record highs has weakened, at least for now.
Main News: What Triggered the Sudden Fall in Silver Prices?
The decline in the silver rate today comes after a phase of aggressive buying that pushed prices to extreme levels.
Just last week:
- Spot silver touched a record high of $121.64 per ounce
- Spot gold hit an all-time peak of $5,594.82 per ounce
Precious metals rallied sharply through the previous month. The rise was fueled by a mix of speculative interest, geopolitical uncertainty, and concerns around monetary policy stability in the US.
However, the tide turned late last week.
Silver registered its steepest single-day fall, while gold saw its sharpest decline in more than a decade. That reversal appears to have carried into today’s session, pulling prices sharply lower once again.
Adding to the pressure, easing tensions between the US and Iran reduced safe-haven demand, while a firmer US dollar made dollar-priced commodities less attractive.
A Look Back: When Silver Saw a Similar Boom-and-Bust?
The current silver rally—and its sudden crash—has drawn comparisons with one of the most dramatic episodes in commodity market history.
During the late 1970s, the Hunt Brothers aggressively tried to take control of the silver market. They accumulated huge volumes of physical silver and built large positions in silver futures on COMEX, pushing prices sharply higher in the process.
Here’s what happened back then:
- Silver prices surged from around $6 per ounce to nearly $50 per ounce by 1980
- Exchanges later increased margin requirements
- The Hunts were unable to meet margin calls
- The market collapsed in what became known as “Silver Thursday”
- Silver prices crashed, leading to heavy financial losses and legal action
While the structure of today’s market is different, the sharp rise followed by intense volatility has brought back memories of that era.
Company Details: Global Cues and Policy Signals in Focus
Investor focus has now shifted to broader policy signals and global cues.
Markets are assessing the policy outlook following Kevin Warsh’s nomination as the US Federal Reserve Chair. President Donald Trump stated that he would not have nominated Warsh if there had been any indication of support for higher interest rates.
Even so, uncertainty around future monetary policy direction has added to market nervousness. That uncertainty, combined with stretched valuations after the recent rally, has amplified selling pressure across precious metals.
Summary: What Silver Rate Today Signals for the Market?
The sharp fall in the silver rate today underscores how quickly sentiment can change in commodity markets—especially after a strong speculative run.
To sum it up:
- Silver and gold prices have corrected sharply after hitting record highs
- MCX and COMEX both recorded steep percentage declines
- Profit booking, easing geopolitical risks, and a stronger dollar weighed on prices
- Volatility has returned after weeks of one-sided gains
- Historical parallels highlight how fast silver rallies can reverse
For now, the precious metals space has clearly entered a phase of heightened volatility. Market participants are recalibrating positions after the recent extremes, keeping a close eye on global cues and policy-related developments.
As things stand, silver rate today reflects a market that has moved from euphoria to caution—almost overnight.
Source: Livemint
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