Silver prices crash 10% — and the tremors were felt across ETFs, metal stocks, and domestic futures markets.
The sharp move came as the U.S. dollar strengthened after stronger-than-expected January jobs data cooled hopes of near-term rate cuts by the U.S. Federal Reserve. When the dollar gains, precious metals usually lose shine. This time was no different.
From Silver ETFs to mining stocks, the selling was swift.
Market Performance: Silver Prices Crash 10% Sparks Broad Sell-Off
The headline was clear — silver prices crash 10% in global markets.
The fall dragged down silver-linked instruments and metal counters in India.
On the domestic side:
- Tata Silver ETF fell up to 7%
- Nippon India Silver ETF slipped 6.5%
- Zerodha Silver ETF declined 6.26%
- HDFC Silver ETF dropped 6.6%
- ICICI Prudential Silver ETF fell 6.2%
The pressure was visible across the board. Investors reacted quickly as global cues turned negative.
Shares of Hindustan Zinc dropped nearly 5% in trade.
Meanwhile, Hindalco Industries fell more than 5%, adding to the weakness in the metals pack.
The reason? A mix of global currency strength and company-specific developments.
Why Silver Prices Crash 10% When the Dollar Strengthens?
Precious metals and the U.S. dollar often move in opposite directions.
Silver, like gold, is priced globally in dollars. When the dollar rises:
- Metals become pricier for buyers using currencies other than the U.S. dollar.
- Demand tends to weaken
- Prices adjust lower
This time, the trigger was strong U.S. jobs data. That data reduced expectations of immediate interest rate cuts.
There were also reports that Russia may consider returning to the dollar settlement system as part of a possible economic understanding with the United States. That narrative further boosted the dollar.
A stronger dollar typically caps aggressive rallies in precious metals. And when prices are already near short-term highs, the correction can turn sharp.
That explains why silver prices crash 10% so quickly.
Domestic Silver ETFs React Sharply
ETF investors felt the heat immediately.
When silver prices crash 10%, exchange-traded funds tracking silver prices automatically adjust to reflect global moves.
The biggest declines were seen in:
- Tata Silver ETF – down 7%
- HDFC Silver ETF – down 6.6%
- Nippon India Silver ETF – down 6.5%
- Zerodha Silver ETF – down 6.26%
- ICICI Prudential Silver ETF – down 6.2%
The reaction was uniform. No ETF was spared.
This shows how closely domestic silver ETFs track global silver prices.
Hindustan Zinc Shares Drop Nearly 5%
The fall in silver also weighed on metal counters.
Shares of Hindustan Zinc dropped nearly 5% during the session.
When silver prices correct sharply, stocks linked to the metal often witness selling pressure. Investors tend to reassess near-term earnings sensitivity.
The move reflected global commodity softness rather than company-specific announcements during the trading session.
Hindalco Industries Falls Over 5% After Q3 Profit Drop
The weakness extended to broader metal stocks.
Hindalco Industries shares fell more than 5%.
The company reported a 45% year-on-year drop in Q3 profit. The decline was driven by expenses related to fire-linked disruptions at its U.S. unit, Novelis.
The earnings update added further pressure to the metal sector at a time when global silver prices were already under stress.
International Commodity Market: Rebound After One-Week Lows
Interestingly, after the initial slide, both gold and silver saw bargain-hunting activity.
In global markets, the metals rebounded from one-week lows.
On the Multi Commodity Exchange (MCX):
- Silver futures for March 5, 2026 delivery
- Rose nearly 3%
- Gained ₹6,565
- Climbed to ₹2,43,000 per kg
This rebound suggests short-term traders stepped in after the steep fall.
However, the broader narrative remains tied to currency movement and global macro signals.
Company Details Snapshot
Hindustan Zinc
- Shares declined nearly 5%
- Reaction aligned with silver price correction
- Part of broader metals weakness
Hindalco Industries
- Shares fell over 5%
- Q3 profit declined 45% YoY
- Impacted by fire-related disruptions at U.S. unit Novelis
What Silver Prices Crash 10% Means for Markets?
When silver prices crash 10%, three things usually happen:
- ETF flows turn volatile
- Metal-linked stocks face pressure
- Short-term trading activity spikes
This episode was no exception.
The trigger came from strong U.S. jobs data and a strengthening dollar. That combination cooled rate-cut optimism and strengthened the American currency — a direct headwind for precious metals.
At the same time, bargain-buying emerged once prices touched short-term lows. That helped silver futures on MCX rebound nearly 3% in the session.
Summary: A Dollar-Driven Shockwave Across Silver Markets
Silver prices crash 10% — and the impact rippled across ETFs, mining stocks, and futures markets.
- Silver ETFs declined up to 7%
- Hindustan Zinc fell nearly 5%
- Hindalco dropped over 5%
- MCX silver futures rebounded nearly 3%
- Futures climbed to ₹2,43,000 per kg
The driver? A stronger U.S. dollar following solid jobs data and macro developments around global settlements.
In commodities, currency strength matters. A lot.
This move is a reminder that precious metals remain highly sensitive to interest rate expectations and dollar momentum.
And when the dollar rises sharply, silver often steps back.
Source: Moneycontrol
Easy & quick
Leave A Comment?