Silver Cracks 17%, Slides Nearly Rs 70,000 in a Single Day - Time to Book Profit or Stay Invested?

Silver prices saw a dramatic reversal on the commodities market as recent gains gave way to heavy selling pressure. After an extraordinary rally that lifted March silver futures by about 74% in January 2026, prices plunged sharply — falling nearly Rs 37,000 in a single session and sliding back below the Rs 4 lakh mark it had just breached.

The sharp pullback highlights how quickly market sentiment can shift after a steep rally into record territory. While geopolitical tensions, expectations of interest rate cuts and a weaker U.S. dollar have supported safe-haven demand for bullion, the pace of recent gains pushed technical indicators into overbought territory, prompting profit-taking among traders.

Analysts note that key support levels around Rs 3,55,000–Rs 3,60,000 could attract buying interest, and if momentum resumes, resistance near Rs 4,15,000–Rs 4,20,000 may come into focus again. Some experts see longer-term structural strength in silver due to supply constraints and industrial demand, even as others caution that near-term volatility remains elevated and the risk–reward balance could be less favorable after the rally.

Global silver ETFs have experienced outflows this year even as prices stayed elevated, contrasting with steadier inflows into gold funds — a signal of shifting investor preferences amid market uncertainty.