Silver crashed on Monday December 29, 2025. After making a high on Multi Commodity Exchange (MCX), prices fell by 8% or around ₹21,000 per kilo. Silver opened at ₹2.39 lakh per kg in the morning then reached an all-time high of ₹2.54 lakh. Later it suddenly tumbled to ₹2.33 lakh. According to experts, the reasons for the decline in rapidly rising prices range from signs of reduced geopolitical tensions to technical factors. Increased margin is also one reason. 1. Demand decreased: Selling due to hopes of peace talks between Russia-Ukraine The immediate reason for the fall in silver prices is believed to be the news of peace talks regarding the Russia-Ukraine war. The US President Donald Trump stated on Sunday that he and Ukrainian President Zelenskyy are very close to a peace agreement. With hints of the war ending, investors started withdrawing money from silver. 2. Technical Indicator: Price was 89% above 200-day average According to market analysts, silver was trading 89% above its 200-day moving average (DMA). It has been observed before that whenever prices reach this level, they undergo a major correction of 20-30%. In 1979-80 and 2011, prices fell by 70-90% after similar rallies. 3. Margin Increased: Traders had to sell their positions The Chicago Mercantile Exchange (CME) has increased the initial margin on silver futures from about $20,000 to $25,000. This forced traders to deposit more cash and many had to cut their positions out of necessity, which intensified the selling pressure. BTIG warns of 25%-30% more crash in next 1-2 months if silver rates reach 50-DMA According to Reliance Securities analyst Jigar Trivedi, the long-term trend is still positive, but volatility will persist. Meanwhile, BTIG believes that if prices reach the 50-DMA, a further correction of 25-30% is possible in the next 1-2 months. MCX is India’s largest commodity derivatives exchange. Here’s how to understand it in simple terms: Post navigation Top 5 private banks with highest interest on fixed deposits:IndusInd Bank gives 7% RoI; Senior citizens get 0.75% additional rates with Axis Bank; lenders change rates after RBI cuts repo rate Tomorrow is the last day to file belated ITR:Over 7 million returns are pending, and missing the deadline could result in a 25-70% higher tax payment
