Silver Plunges Rs 10,000 on MCX as Futures Tumble; HSBC Predicts Further Decline

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AuthorVihaan Mehta|Published at:
Silver Plunges Rs 10,000 on MCX as Futures Tumble; HSBC Predicts Further Decline
Overview

Silver prices dropped Rs 10,000 on MCX Thursday, with March 2026 futures falling sharply. HSBC revised its outlook, forecasting gradual price declines through 2029 due to weakening industrial and jewelry demand, despite a significant demand deficit.

Silver Prices Crash on MCX

Silver prices experienced a significant nosedive on Thursday, shedding Rs 10,000 per kg during trading hours on the Multi Commodity Exchange (MCX). The March 2026 futures contract, which opened lower, saw its value plummet from Wednesday's close of Rs 2,50,605 to Rs 2,40,605 before settling around Rs 2,43,911 by midday.

Market Sentiment Shifts

This steep correction follows December's record high, signaling growing instability within precious metals markets. By noon, silver was trading down 2.67% from its previous closing price, demonstrating the rapid shifts in market sentiment. The sharp move lower indicates a potential change in trend for the white metal.

HSBC's Gloomy Forecast

Financial institution HSBC has updated its silver price outlook, projecting a period of gradual decline over the coming years. While the bank raised its 2026 average price forecast to $68.25 per ounce, it anticipates a significant fall to $57.00 in 2027 and further to $47.00 by 2029. This outlook suggests a challenging period ahead for silver investors and producers.

Demand Weakness and Supply Factors

HSBC attributes its bearish stance to several key factors. Industrial demand is showing signs of weakness, and a significant number of jewelry purchasers are stepping back, deterred by the high prices. Although silver is facing a substantial demand deficit of 230 million ounces in 2025, this deficit is projected to shrink considerably to 140 million ounces in 2026 and a mere 59 million ounces by 2027.

Production Increases

Furthermore, mining production is expected to see an uptick. This increase is driven by enhanced recycling efforts and a rise in byproducts from other metal extraction processes. While gold continues to provide a stable safe-haven appeal, silver's primary demand drivers in industry and jewelry appear to be losing momentum.

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