MCX silver price crashes 47% from peak. Can it fall below ₹2 lakhs?

The sharp decline in silver prices indicates a shift away from safe-haven assets or significant profit booking, potentially impacting companies involved in silver mining or trading. The broader market has shown mixed signals recently, with some days seeing significant gains and others large drops, suggesting overall market volatility.

Given the bearish sentiment and volatility in silver, a short-term bearish bias is warranted for silver futures and related instruments, with strict stop-losses.

For Indian markets, this story mainly matters for the Precious Metals pocket. The current signal is bearish, so traders should watch whether the effect spreads across the sector or stays limited to a single name.

Watch whether the market validates this read through price action, volume, and breadth. If the headline matters, the signal should show up in execution, not just in commentary.

• •MCX silver has fallen nearly 47% from its peak.
• •Prices dropped significantly on April 2, with futures down 4.48%.
• •The fall reflects profit booking amid geopolitical tensions.
• •Analysts recommend caution and profit booking, expecting volatility to persist.
• •Risk flag: Sudden escalation of geopolitical tensions could reverse the trend for safe-haven assets like silver.