After silver soared past 2,50,000 on the Multi Commodity Exchange (MCX) for the first time on Monday, December 29, the white metal has cooled off, dropping by over 5% during the evening trade.
According to data available on MCX, Silver March futures fell 5.7% to settle at 2,25,954 per kg at around 8:00 pm on Monday, which is a steep fall from an earlier record high of 254,174 per kg in the morning session.
The selling pressure shows no signs of easing, with silver price continuing to slide sharply on MCX as the session progresses, extending losses after the sharp reversal from record highs.
Silver gained more than gold this year
Silver’s rally in India comes alongside a surge seen in international markets. The price of silver crossed $80 mark earlier this morning for the first time. However, later in the day, the price of the white metal retreated as traders booked profits, following a massive surge of over 180%.
A similar trend of profit booking can also be witnessed on MCX, as silver price continues to drop in the evening session.
Silver has gained 181% year-to-date, outpacing gold by a significant margin to emerge as the best-performing asset this year. It managed to outshine the yellow metal for several reasons, including the market being thinner and the possibility of liquidity evaporating quickly, Bloomberg said in a news report.
This essentially means that since silver market is smaller and comparatively less liquid than gold, even a moderate rush of buying can push prices up very sharply, and selling can drag prices down just as fast.
The white metal has now become more valuable than the world’s most valuable company, Nvidia, as its market cap surged to $4.65 trillion, edging past Nvidia’s valuation of $4.63 trillion, mint reported earlier.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
