After a sustained period of rally, silver prices declined sharply, plunging over 15% to trade near Rs 3.40 lakh per kg levels. The sharp fall comes on the back of silver, almost reaching Rs 4 lakh levels, mirroring the unprecedented rally seen in gold as well. On the multi commodity exchange (MCX), the white metal has crashed by more than 11% or Rs 30,000 to Rs 3,71,700 per kg from a record high of Rs 4,20,048 per kg. The price crash has also triggered concerns among investors, as even safe havens like gold and silver are now gripped by volatility.

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Why Are Gold, Silver Prices Crashing Today?

Silver and gold dropped for the first time in nearly two weeks, as the US dollar strengthened after US President Donald Trump said he plans to announce his choice for chairman of the Federal Reserve on Friday morning.

This decision could set up a showdown on whether the U.S. central bank preserves its independence from the White House and electoral politics. The Trump administration is reportedly set to nominate Kevin Warsh as the next Federal Reserve chair, triggering a market reaction. 

Silver Price Outlook

Despite the momentary fall, though, Citi remains tactically bullish on silver as the metal continues its sharp upward trajectory. The brokerage firm has raised its 0–3 month price target for silver to $150 per ounce. Citi upgraded its silver target to $150 per ounce from a previous forecast of $100, citing stronger‑than‑expected momentum.

The firm sees a 30–40% upside for silver in the coming weeks, driven by tightening supply and robust investor demand. Citi reiterated its bullish stance on silver in the near term, expecting further gains as market conditions tighten. The rally in silver since December appears to be led largely by China, according to the bank’s analysis.

Analysts said silver is currently behaving like ‘gold on steroids,’ outperforming the yellow metal amid heightened volatility. Citi’s gold‑silver ratio analysis suggests silver prices could reach $160–$170 per ounce, showing further potential strength for the white metal.

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In the local markets, gold of 99.5 per cent purity dipped ₹1,000 to ₹1,01,100 per 10 grams (inclusive of all taxes) on August 12, 2025. File photo: Special Arrangement