Silver prices witnessed a sharp fall on February 5, bringing relief to buyers. After days of intense volatility in gold and silver rates, silver prices corrected significantly. The decline has opened fresh buying opportunities, especially for middle-class investors.
In recent sessions, precious metal prices moved unpredictably. This created uncertainty among retail buyers and large investors alike. However, the sudden fall in silver prices has eased some of that pressure.
Silver Opens at 6 Percent Lower Circuit on MCX
On the Multi Commodity Exchange, silver opened at a 6 percent lower circuit. This marked one of the steepest single-day declines in recent weeks. The fall came after silver had surged sharply in earlier sessions.
Silver, which once touched an all-time high of ₹4,20,000 per kilogram, has dropped sharply. It is now trading near ₹2,58,096 per kilogram. This correction has significantly reduced entry costs for new buyers.
Market participants noted heavy selling pressure at higher levels. Profit booking intensified after the recent rally.
Weakness Seen in International Silver Market
Silver prices also weakened in the international market. On Comex, silver slipped sharply during early trade. The price declined to around 76.63 dollars per ounce.
The fall in global prices added pressure on domestic markets. International cues played a major role in driving today’s decline. Traders tracked movements in the dollar and global commodity trends.
The correction followed a strong upward rally seen earlier this year. Analysts believe such movements are common after rapid price increases.
Middle-Class Buyers Find Buying Opportunity
The sharp fall has created a favorable situation for retail buyers. Middle-class families looking to buy silver for investment or household use welcomed the correction. Many had stayed away during the recent price surge.
With prices falling from record highs, affordability has improved. Buyers who missed earlier opportunities are now reconsidering their plans. Jewellers and bullion traders reported renewed interest at lower levels.
Market watchers believe demand could rise if prices stabilize further.
Gold Prices Also Witness Decline on MCX
Alongside silver, gold prices also registered a decline. On MCX, gold prices fell by nearly ₹4,000 per 10 grams. Gold is currently trading near ₹1,49,000 per 10 grams.
The fall in gold followed profit booking after a strong rally. Despite geopolitical tensions supporting gold earlier, recent selling pressure impacted prices.
Investors remained cautious as both metals showed increased volatility.
Dollar Strength and Profit Booking Behind Fall
Experts attribute the decline to multiple factors. A stronger dollar has reduced demand for precious metals. After a rapid rally, traders booked profits aggressively.
Margin increases also contributed to selling pressure. These factors combined to trigger sharp intraday volatility. Lower-level buying helped prevent an even steeper fall.
Analysts said such corrections are part of healthy market movements.
Bullion Market Shows Mixed Trends in Cities
In the physical bullion market, trends appeared mixed across major cities. In Delhi, gold prices remained firm despite futures weakness. Twenty-four carat gold traded near ₹6,280 per 10 grams. Twenty-two carat gold traded around ₹5,760 per 10 grams.
Both gold categories saw a marginal rise of ₹10 per 10 grams. This reflected steady local demand despite futures market volatility.
Silver prices in the physical market showed limited movement.
Silver Prices in Delhi and Other Cities
In Delhi, silver prices softened slightly today. Silver traded near ₹3,20,100 per kilogram. This marked a decline of ₹100 compared to the previous session.
Chennai, Mumbai, and Kolkata recorded similar silver prices. The consistency indicated balanced demand across major markets.
Despite the correction, silver prices remain higher than earlier months.
Recent Price Trend Shows Sharp Swings
Over the past few days, silver prices have shown extreme fluctuations. Including earlier stability, silver became nearly ₹1.30 lakh cheaper per kilogram over five days.
This sharp correction followed an unusually strong rally. After that decline, silver recovered partially over two sessions. Prices rose by a combined ₹40,100 during that period.
Today’s mild softness reflects ongoing consolidation.
Experts Call Current Fall a Market Shakeout
Commodity experts believe the recent fall is a natural market shakeout. According to market analysts, the correction followed record-high levels. Increased margins and profit booking intensified volatility.
Experts say such pullbacks are common after steep rallies. They help markets regain balance before the next trend emerges.
Short-term fluctuations are expected to continue.
Gold’s Long-Term Trend Remains Strong
Despite the current correction, experts remain optimistic about gold’s long-term outlook. Analysts say the broader bullish trend remains intact.
Central bank buying continues to support gold prices. Rising geopolitical risks also provide long-term support. Portfolio diversification demand remains strong.
These factors could drive gold prices higher again later this year.
Central Bank Buying Supports Precious Metals
Experts highlighted strong central bank demand for gold. In the fourth quarter of 2025, central banks reportedly purchased around 230 tonnes of gold. This buying trend is expected to accelerate.
In 2026, central bank gold purchases may exceed 800 tonnes. Such sustained demand provides structural support to gold prices.
Silver also benefits indirectly from broader precious metal sentiment.
Volatility Expected to Continue in Coming Sessions
Market participants should prepare for continued volatility. Global economic cues, currency movements, and geopolitical developments remain key drivers.
Short-term traders may witness sharp intraday swings. Long-term investors are advised to focus on broader trends rather than daily fluctuations.
Price corrections often create opportunities for disciplined buyers.
Buyers Advised to Track Market Closely
Experts suggest buyers monitor price movements carefully. Entering the market in phases may reduce risk. Sudden rallies and falls can impact short-term positions.
Retail buyers should align purchases with long-term goals. Avoiding panic during volatile sessions remains crucial.
The current phase reflects a market searching for direction.
Precious Metal Market Remains in Focus
Gold and silver prices remain closely watched assets. Their movements reflect global economic sentiment and risk appetite.
While silver has corrected sharply, interest remains strong. Buyers view lower prices as an opportunity rather than a setback.
The coming days will determine whether prices stabilize or move further.
Correction Brings Temporary Relief to Buyers
For now, the sharp fall has brought relief to buyers. After record highs, silver prices appear more accessible. This has revived demand across segments.
Markets remain dynamic and sensitive to global cues. Investors and buyers should stay informed.
Silver’s sharp correction marks an important shift in the current price trend.
