MCX Silver Price Today: March Futures Crash Over 9%, Silver Rate Drops Down Rs 2.50 Lakh/Kg on 5 February 2026

India's leading commodity derivatives bourse, the Multi Commodity Exchange (MCX), saw heightened volatility on Thursday as silver futures came under intense selling pressure in early trade. Silver futures for March 5, 2026 delivery on the MCX cracked nearly 8-9 per cent in early trade on February 5, 2026, slipping below the psychologically important Rs 2.50 lakh per kg level.

MCX Silver Price Today: Silver Futures Crashed; Check Updates

At around 10:57 am, MCX silver March futures were trading at Rs 2,42,591 per kg, down by about Rs 24,650 or 9.17 per cent from the previous close. The contract had opened the session at Rs 2,58,096 per kg but quickly came under selling pressure, touching a low of Rs 2,42,591 per kg. During the session, prices oscillated sharply, with a high of Rs 2,68,850 per kg recorded earlier in the day before the steep fall set in.

Why Silver Rate is Down Today: Will Silver Prices Fall Further?

The sharp decline in MCX silver mirrored weakness in global precious metals markets, where investors turned cautious amid rising interest rate concerns and a stronger US dollar. Traders noted that the fall below Rs 2.50 lakh per kg triggered additional stop-loss selling, accelerating the downside move.

According to UBS report, the recent decline in silver prices can largely be attributed to a shift in investor perception following the announcement of Kevin Warsh as the next Chair of the US Federal Reserve. In a note released earlier this week, the brokerage pointed out that the nomination has helped calm extreme risk fears that had earlier underpinned demand for silver.

UBS explained that in recent quarters, investors had increasingly turned to gold and other precious metals as a safeguard against concerns over the Federal Reserve's autonomy and policy direction. With those worries now receding, the appeal of precious metals as a defensive allocation has weakened, prompting investors to pare positions. This change in sentiment has contributed to heightened selling pressure and a sharp pullback in silver prices.

Should You Buy, Hold or Sell Silver? Check Motilal Oswal's Recommendation

"Silver: Retain exposure to silver in portfolios; consider partial profit-booking for large exposures, and staggered accumulation on corrections for those with no-to-low exposure," stated Motilal Oswal Private Wealth's Alpha Strategist January 2026 Report.

"Silver's sharp rally has been driven by structural supply constraints amid rising industrial demand from solar, EVs, and technology, though its higher volatility may warrant a more measured approach in 2026," added Motilal Oswal report.

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