Mumbai, Dec 29 (IANS) Silver prices in global markets retreated sharply after touching fresh intraday records of $84 per ounce in the spot market on Monday.

The white metal slipped as much as 8 per cent from its peak due to strong profit booking, snapping what could have been a seventh consecutive day of gains.

March silver futures on MCX was trading up 4.22 per cent intraday (as of 10.10 am), at Rs 2,49,282 per kilogram. Globally, the futures had surged to an intraday high of $82.67 an ounce in early trade, up 7 per cent on top of the 11 per cent jump on Friday — the strongest single‑day gain since 2008.

At those price levels, silver was extending a rally that has eclipsed even the historic supply squeeze seen in October.

Analysts said that thin holiday trading amplified the sharp moves as subdued volumes exaggerated price swings. Tighter inventories and liquidity that can evaporate quickly is supporting the rally.

Silver doesn’t have a reserve like gold as the London gold market is underpinned by around $700 billion of bullion that can be lent out in the event of a liquidity squeeze, they reminded.

Even as silver is up about 180 per cent so far in 2025, three trading sessions remain, putting it on track for its best annual performance since 1979 when gains exceeded 200 per cent.

“A weaker dollar index, Fed rate-cut expectations, and rising geopolitical tensions supported the rally. The dollar index fell for the fifth consecutive week on hopes of further US monetary easing. Renewed US–Venezuela tensions have also boosted safe-haven buying,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

China’s proposed silver export restrictions from January 2026 sparked a sharp rally in silver, while global uncertainties continue to drive investment flows toward precious metals.

“Silver has support at Rs 2,38,810-Rs 2,37,170 while resistance at Rs 2,41,810- Rs 2,43,470,” he added.

–IANS

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