Precious Metals Market in Sharp Correction: Silver Plummets 33.6% Amid Volatility Surge

Intelligence analysis indicates a severe correction in precious metals markets, with silver experiencing a dramatic decline of 33.6% over two trading sessions, representing a cumulative loss of Rs 1,34,241 per kilogram. This rapid descent follows what market observers describe as unsustainable price acceleration, leading to a significant technical breakdown. On a weekly comparative basis, silver has retreated approximately 21% from its January 23 peak of Rs 3,34,699 per kg, shedding Rs 69,047 in value. The velocity of this decline suggests a market recalibration rather than fundamental deterioration, with technical indicators pointing to overbought conditions preceding the sell-off. Analysts attribute this volatility to a confluence of factors including profit-taking by institutional investors, shifting risk appetite in global markets, and adjustments in inflation expectations. The gold-silver ratio has widened considerably during this period, indicating divergent performance between the two primary precious metals. Market intelligence suggests this correction may present strategic entry points for long-term positions once volatility subsides, though near-term pressure is expected to persist as markets digest the rapid price movements. Regulatory bodies are monitoring the situation for any signs of market manipulation or systemic risk.