Record-Breaking Silver Prices Correct 8% Amid Calmer Global Trade Sentiment

After hitting record highs in recent weeks, silver took a sharp step back on October 17, as calmer global trade conditions reduced demand for the metal as a safe haven. Investors took profits, causing prices to fall both in domestic and international markets. 

On the Multi Commodity Exchange (MCX), silver futures fell nearly 10% from their peak before recovering slightly, while globally the metal dropped about 6%, sliding from its all-time high of $54 per ounce to $51.5. The sharp decline marked one of the biggest single-day drops in months, showing just how quickly sentiment can change in commodity markets. 

Why Silver Soared Earlier 

Silver’s rally had been driven by a mix of investor interest and industrial demand. The metal is not only a popular safe-haven investment like gold, but it’s also widely used in manufacturing and technology, from electronics to solar panels. This dual demand had created a supply crunch, pushing prices ever higher. 

Concerns over inflation and geopolitical tensions had further encouraged investors to move money into silver. Over recent weeks, the combination of speculative buying and genuine industrial demand propelled the metal to record levels. 

However, the mood shifted last week after signs of easing in the U.S.-China trade conflict. President Donald Trump stated that the additional 100% tariffs on Chinese goods he had proposed were “not sustainable,” though he added that Beijing had “forced his hand.” This suggested that the threat of further trade escalation might be lower than previously feared. 

As a result, the safe-haven appeal of silver weakened. Investors turned away from precious metals to riskier assets, while some sold their holdings to lock in profits. 

The Market Reaction 

In India, silver on the MCX fell from a record ₹1,70,415 per kilogram to an intraday low of ₹1,53,700, before closing at ₹1,57,300. That left prices about 8% below their all-time peak. Globally, silver mirrored the slide, stabilising around $51.5 per ounce after a brief dip. 

By October 20, silver is trading near ₹1,56,755 per kilogram, up just 0.1% for the day. Analysts say some short-term volatility is likely as traders continue to book profits. 

Despite the correction, silver’s longer-term outlook remains supported by industrial demand, particularly in manufacturing and renewable energy. However, the recent retreat serves as a reminder that even metals with strong fundamentals can experience sudden pullbacks when market sentiment shifts. 

For now, silver is taking a breather after its dazzling run, giving investors time to reassess before the next potential rally.