Sharp Drop in Silver Rate in Chennai Today, Dec 29: Prices Cool After Rs. 64,000/kg Rally in Just 8 Days

After a scorching rally that made silver the best-performing metal of the year, silver prices finally saw some relief today. The silver rate in Chennai today, December 29, slipped sharply as investors booked profits post a massive run-up over the past few days. The silver prices in Chennai surged by nearly Rs. 64,000 per kg in just eight days.

Silver price has risen more than 180% so far in 2025 because of strong global demand and supply constraints. However, after touching record highs, white metal prices underwent a pullback as traders chose to lock in gains.

MCX Silver Futures Slip Nearly 1%

On the Multi Commodity Exchange (MCX), silver futures cooled off from record levels, falling 0.87% to trade at Rs. 238,269 per kg. Earlier in the session, silver had touched an all-time high of Rs. 254,174 per kg before retreating.

International Silver Prices Fall

In the global market, silver prices briefly crossed the $80 per ounce mark for the first time in highly volatile trade. However, prices later slipped and are currently hovering around $75.71 per ounce as per KITCO. The drop in spot silver was because of two main reasons: first, profit-taking by investors and second, the reports of progress in the US-Ukraine peace deal.

Silver Rate in Chennai Today, December 29

The retail silver prices in Chennai declined by Rs. 4,000 per kg, bringing the rate down to Rs. 281,000 per kg. Meanwhile, 100 grams of silver now costs Rs. 28,100, down Rs. 400 from the previous session. The dip has brought some temporary relief to buyers after days of relentless price rises.

Silver Price Outlook and Target

According to a report by Nirmal Bang Securities, silver prices may continue to witness short-term profit booking. The broking said, "Silver prices are expected to see profit booking till Rs. 237,000-235,000. One can buy at Rs. 235,000 with a stop loss of Rs. 233,000 for a target of Rs. 238,000."

Gold Rate in Chennai Today

Silver was not alone in correcting today. Gold prices in Chennai also witnessed a sharp drop. The 24-carat gold crashed by Rs. 870 per 10 grams to Rs. 142,040, and the 22-carat gold price in Chennai slipped by Rs. 800 per 10 grams to Rs. 130,200. Similarly, the 18-carat gold fell by Rs. 850 per 10 grams to cost Rs. 108,650.

Why Have Silver Prices Risen So Sharply?

Silver's rally is not just about jewellery demand; the metal plays a crucial role in modern industries. Oxford Economics, in its recent report, has called silver the "next-generation metal" due to its unmatched electrical and thermal conductivity, corrosion resistance, and critical use in solar power, electric vehicles (EVs), and data centres.

The report mentioned that global solar PV capacity has grown 10 times in the last decade, which tripled silver demand despite efficiency improvements. Solar installations are also expected to grow at a 17% CAGR till 2030, with next-generation cells requiring even more silver.

"EV demand is another major driver. Electric vehicles use 67-79% more silver than internal combustion engine vehicles, which adds to consumption. Silver demand is also rising due to the boom in data centres and AI infrastructure, where silver is widely used in semiconductors, cooling systems and connectors." The report was further noted.

As per the India Bullion and Jewellers Association (IBJA), "the rally has also been fuelled by strong central-bank purchases, ETF inflows and three consecutive US Federal Reserve rate cuts. Lower interest rates typically support precious metals, which do not offer interest income."

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