Silver Price Plunge 6% to ₹2,35,952 per͏ kg Glo͏bal Sell-Off͏ and Margin Hike 

Mumbai, 31 December 2025: Profit booking and increased margin requirement led to a fresh selling pressure on silver on global as well as Indian exchanges on Wednesday. At 09:11 a.m. IST, international spot silver price was $72.54, down 4.90% on the day, though it is still 0.5 2% up in the week. After spiking to an all-time high of $82.95 on 2 9 December, the metal has declined almost $ 10. 

In India, silver futures on the Multi Commodities Exchange (MCX) started at ₹ 2,35,952 per kg with 999 purity, falling by almost 6 per cent from the previous close of ₹ 2,51,012 and about 8 per cent from Monday’s high of ₹2,54,783. 

Spot Silver S͏lides 4.90% to ͏$72͏.54 After Hitting Record $82.95͏  

The global silver market experienced a sharp reversal after prices firmed up at multi-month highs at the start of the week. Having hit a high of $82.95 on 29 December, the metal has retreated ͏ by around $10 in the past two sessi͏ons. Spot silver was trading at $72.54 as of 9:11am IST on 31 December 2025, down 4.90% in a single day. 

Despite the drop on the day being quite steep, the price still managed to post a small weekly gain of 0.52%, suggesting that the correction followed an unusually fast price climb, as opposed to a long, drawn-out downtrend. 

MCX Silver Futures Open 6% Lower at ₹2,35,952 Per ͏Kg  

Domestic silver futures followed the selloff in the global markets. The MCX silver contract on Wednesday was trading at ₹2,35,952 per kg at the beginning of the session, down about 6 per cent from Tuesday’s close of ₹2,51,012. This also amounted to a correction of almost 8% over the recent peak of ₹2,54,783 achieved at the start of the week. 

The size of the plunge suggests a fast correction, as speculative and momentum-driven positions in many commodity markets are being unwound following recent rallies.  

 Margin Requirement Raised to $25,000 as CME Move Triggers Forced Liquidations 

The silver decline was further hindered by the policy change at the Chicago Mercantile Exchange (CME) which raised the overnight margin requirements to $25,000 – the second increase this month, as stated in Augmont Bullion report dated 30 December.  

The rise in margin requirements forced leveraged traders to liquidate positions, closing out positions irrespective of individual market views and adding to the selling pressure. 

Russia-Ukraine Tensions and Profit-Taking Add to Selling Pressure 

Along with the increased margin, market participan͏ts also booked some profits after the sharp rise in the metal to record levels. The report also highlighted the escalating geopolitical tensions in Russia-Ukraine as diminishing demand for safe-haven assets such as silver. 

Together, these two events caused a sudden and simultaneous sell-off in global and local markets. 

Augmont Bullion See Silver in Consolidation between $70 and $75 ͏After a Spike in Volatility 

Augm͏ont Bullion noted ͏that the volatility of the precious metal has been very high in recent s͏essions. Following the sharp correction, the report anticipates that the silver price will consolidate in the band of $70 (₹2,23,00, 0 0) to $75 (₹2,37,00,000) in the short term as a sell-off and liquidation of positions. 

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