Silver Prices Fall 8% as US-China Tensions Ease

20 October 2025 – Silver continued its drop from all-time highs as relief in easing US-China tensions lifted safe-haven demand. The metal has dropped around eight percent from its all-time high, with speculators taking profits as tariff concerns were muted and the global economic picture became more stable.

Change in Investor Mood

The retreat followed indications of warming trade ties between Washington and Beijing. Earlier, fears of possible tariff hikes had fueled strong buying in precious metals. Recent softening comments from both governments prompted investors to reset risk appetite, triggering marginal profit-taking in silver.

Price Action on MCX

Silver was trading at ₹1,56,416 per kg on the Multi Commodity Exchange as of 10:35 a.m. on October 20, lower than the last close of ₹1,56,604 per kg. The range during the day was ₹1,55,518 to ₹1,59,875 per kg, whereas the lifetime range of the metal is between ₹97,515 and ₹1,70,415 per kg. The average prices remained around ₹1,57,038 per kg, as the total turnover was 8,064 lots and open interest fell 714 contracts to 23,553. From its all-time high of ₹1,70,415 per kg, silver has lost close to eight percent, an indication of the decline in the geopolitical risk premium.

Global Market Trends

Worldwide, silver retreated to around $51.5 per ounce after hitting an all-time high of almost $54. The retreat was replicated across leading exchanges, as demand for traditional hedges like gold and silver softened with an uptick in global equity sentiment.

Market Context

Silver’s recent rally had been fueled by both safe-haven buying in response to trade and geopolitical risk, as well as robust industrial demand from the renewable energy and electronics industries. As tensions related to trade have eased now, investors are rotating back into risk assets, and therefore short-term correction in the metal’s price path.

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