Overview
- MCX silver for March 5 expiry hit a 15% lower circuit on Monday, dropping ₹39,847 in a day to ₹2,25,805 per kg.
- From last Thursday’s lifetime high of ₹4,20,048, silver has fallen about ₹1,94,243 in four days, leaving late buyers with roughly half their value.
- Gold also slumped, sliding ₹8,865 intraday on Monday to ₹1,38,888 per 10g, and it is down about ₹54,208 from last week’s peak of ₹1,93,096.
- Exchange-traded funds reflected the stress, with silver ETFs down up to 20% on Monday and about 35% over a week, while gold ETFs fell as much as 8%.
- Reporters and market commentators cite heavy profit-taking after budget-day moves, softer industrial demand in China and Europe, a stronger dollar linked in coverage to Fed leadership speculation, and increased short selling.