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Silver Rebounds From Biggest One-Day Drop Since 2020 as Gold Steadies on MCX

A CME margin hike forced leveraged selling, setting off the pullback.

Overview

  • MCX silver futures rose roughly 4% on Tuesday to about Rs 2.33–2.34 lakh per kg, while gold futures traded near Rs 1.39 lakh per 10 grams after Monday’s rout.
  • International silver stabilized near $73 an ounce following a near 9% tumble from record highs above $80, and gold held little changed after its sharpest two-month drop.
  • The selloff followed the CME’s increase in initial margins on March 2026 silver contracts to $25,000 from $20,000, with thin holiday liquidity and profit-taking magnifying moves.
  • Underlying supports remain in place with tight physical inventories, strong industrial demand, and China’s export licensing for silver taking effect on January 1, 2026, which is seen tightening supply.
  • Even after the correction, 2025 gains are outsized—silver roughly +150% and gold about +70% year to date—with several brokerages reiterating a buy-on-dips approach and near-term technical targets.