MUMBAI : Silver, which had turned red-hot earlier this month amid fears of a global shortage, saw a sharp correction following improved physical supply and easing safe-haven demand. Silver Exchange Traded Funds (ETFs), which had delivered stellar one-year returns of up to 70%, logged steep single-day losses of around 7% on October 20, according to data from Ace MF.
In the U.S., silver spot prices that had crossed $50 an ounce in mid-October slipped more than 6% on October 17 as easing trade tensions reduced investor anxiety. The correction quickly rippled into Indian markets, where the India Bullion and Jewellers Association (IBJA) reported a 7% fall in domestic silver prices, from ₹1,71,275 per kg to ₹1,60,100 per kg.
Analysts noted that silver ETFs are now trading at or below fair value, suggesting that the months-long buying frenzy is finally cooling.
Gold, too, saw a mild retreat after touching record highs. Spot gold slipped 0.3% to $4,340.29 per ounce as of 0248 GMT, following a lifetime peak of $4,381.21 the previous session. U.S. gold futures for December delivery eased 0.1% to $4,356.40 per ounce, with investors booking profits amid expectations of further interest rate cuts by the U.S. Federal Reserve.
Back home, the Multi Commodity Exchange (MCX) will observe its special Muhurat trading session today, October 21, with pre-open from 1:30 p.m. to 1:44 p.m., followed by the auspicious one-hour trading window until 2:45 p.m.
Despite the short-term price correction, the festive spirit continues to fuel demand. The All India Gem & Jewellery Promotion Council reported robust Dhanteras sales, with around 50–60 tonnes of jewellery sold nationwide over two days, generating nearly ₹85 crore in revenue. While sales volume remained similar to last year, the value surged by 35–40% thanks to higher prices and buoyant consumer sentiment.