Domestic precious metal markets witnessed a sharp downturn as silver prices on the Multi Commodity Exchange (MCX) tumbled to touch a 52-week low of Rs 1,75,251 per kg on Tuesday. During the intense trading session, the white metal experienced severe volatility, scaling an intraday high of Rs 1,82,887 per kg before succumbing to heavy selling pressure. By the time of filing this report, silver was hovering marginally below the crucial psychological threshold, trading at just under Rs 1,80,000 per kg.

 

Market analysts attribute the ongoing slump in silver prices to a combination of strengthening macroeconomic headwinds and shifting global investor sentiment. Unlike gold, which is primarily driven by safe-haven demand, silver carries a heavy industrial footprint, making it uniquely vulnerable to broader economic shifts. Key factors weighing down the white metal include persistent expectations of elevated global interest rates, a resilient U.S. dollar, and rising Treasury yields that diminish the attractiveness of non-yielding assets. Furthermore, cautious industrial demand - particularly from key manufacturing sectors - alongside profit-booking and the liquidation of leveraged futures positions, has accelerated the downward spiral. Even though structural long-term drivers such as green energy transitions remain intact, near-term market participants continue to exercise extreme caution as silver struggles to find a stable footing.