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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International silver prices hit the $100 an ounce mark for the first time ever on Friday, extending a solid rally. Spot prices for the white metal soared 4.2% to as much as $100.29 during New York trading hours.

The price more than doubled in 2025 and has already surged 40% in the new year. Notably, silver has gained 225% since US President Donald Trump’s return to the White House in January last year.

Geopolitical tensions have driven investors to the safe haven allure of precious metals like gold and silver. The bullion has risen 15% so far in 2026. The yellow metal also hit a fresh high of $4,967 an ounce on Friday, inching steadily towards the $5,000-mark.

A de-escalation of tensions between Europe and the US after Trump’s reversal of his stance on occupying Greenland had pulled back prices of silver earlier this week. However, the metal has found support from the dollar’s poorest weekly performance in seven months, which improved affordability for global buyers.

Investor demand has been amplified by Trump’s renewed criticism of the Federal Reserve, alongside developments involving Venezuela, Iran and Greenland, reinforcing the appeal of hard assets as alternatives to fiat currencies and sovereign bonds.

Moreover, silver, long viewed through the narrow lens of a precious metal, is now at the centre of a powerful transition. With rising relevance across clean energy, electronics, electric vehicles, and national security applications, the metal is entering a phase marked by persistent supply deficits, strategic accumulation, and heightened financial interest. 

The global silver market has been in a deficit for five years running. Demand has exceeded mine supply, forcing drawdown of above-ground inventories. 

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