Silver prices crashed dramatically on Thursday. Investors rushed to book profits after the United States postponed its plan to impose tariffs on imports of critical minerals. The white metal had soared to record highs just one day earlier.
Global Markets Witness Sharp Decline
In international trading, silver prices plummeted by as much as 7.3%. Gold prices also moved lower during the session. This sell-off followed an incredible rally where silver surged more than 20% over the previous four trading days.
The spot price for silver was trading 3.43% lower at $89.9920 per ounce. Earlier in the day, it had hit an unprecedented all-time high of $93.57.
US Policy Shift Impacts Market Sentiment
President Donald Trump stated that his administration would focus on securing bilateral agreements to ensure adequate supplies of critical minerals. This news came via a Bloomberg report. The President also suggested the possibility of implementing price floors on imports instead of percentage-based tariffs.
This approach aims to support supply chain development. However, Trump did not completely rule out imposing levies at a future stage.
Gold Also Loses Its Shine
Gold prices declined as well after reaching a record peak in the prior session. Demand for the safe-haven asset softened due to several factors.
- Reduced concerns about immediate US tariffs eased market anxiety.
- President Trump adopted a softer tone regarding the Federal Reserve chair and Iran.
- Investors engaged in profit booking to lock in gains from the recent rally.
Spot gold traded 0.3% lower at $4,608.77 per ounce. On Wednesday, bullion had touched a historic high of $4,642.72.
Can MCX Silver Reach ₹4 Lakh?
MCX gold and silver prices continued their powerful bull run. They hit record highs during the previous session. Analysts are now examining whether this momentum can sustain.
SAMCO Securities has made a bold prediction. They believe MCX silver prices could potentially rise to ₹3.94 lakh per kilogram. This would extend the metal's record-breaking rally. Prices have already increased over 25% in 2026.
Apurva Sheth, Head of Market Perspectives and Research at SAMCO, provided technical analysis. "The earlier resistance zone around ₹2,59,574 has now turned into an important support area in the event of any interim pullbacks," Sheth explained.
"From a projection standpoint, Fibonacci extensions from the prior base indicate higher price objectives ahead. The 2.618 Fibonacci extension aligns near the ₹2,96,737 zone, which becomes the first major medium term target."
Sheth added further insight. "Beyond this, the 3.618 Fibonacci extension points towards the ₹3,56,871 region. An extended move in a strong momentum environment could even open up levels closer to ₹3,94,034 over time."
The analyst noted that this movement is not isolated. The entire commodity basket is currently experiencing a supercycle, according to her assessment.
Disclaimer: The views and recommendations mentioned above belong to individual analysts or broking companies. They do not represent the stance of Mint. Investors should consult certified experts before making any investment decisions.
