After a record-breaking rally that saw silver touch $95.80 per ounce and breach ₹3.20 lakh per kilogram, the white metal is experiencing a sharp correction. Silver settled around $91.50-$93 on Thursday, cooling from its historic highs as geopolitical tensions eased and investors booked profits following a stunning 30 per cent gain in just three weeks.
The trigger: Trump’s Davos remarks
The primary catalyst for Thursday’s decline was US President Donald Trump’s address at the World Economic Forum in Davos. “President Trump ruled out the use of military force to acquire Greenland, easing geopolitical concerns. This led to profit booking in precious metals,” said Rahul Kalantri, VP Commodities at Mehta Equities.
Trump also confirmed a NATO deal framework that suspended February 1st tariffs on eight allied nations, effectively neutralising the trade-war fears that had driven investors into safe-haven assets. Axis Securities noted that this “removal of trade-war tail risk sparked a buy-the-dip surge” in equity markets, with the Dow Jones rising 590 points and the S&P 500 gaining 79 points.
The de-escalation triggered what analysts called a “sell-the-fact” move in precious metals, with gold falling 0.9 per cent to $4,810 and silver dropping 0.5 per cent. “Comex Silver settled marginally lower around the $93 level as investors booked profits after the sharp, record-breaking rally,” Axis Securities added.
Risk-on sentiment pressures safe havens
The improved risk appetite also strengthened the US dollar and stabilised Treasury markets, with the 10-year yield falling 4 basis points to 4.26 per cent. “Markets pared gains after US President Donald Trump eased tariff threats linked to Greenland, reducing near-term geopolitical risk and strengthening the US dollar — a known headwind for bullion prices,” explained Justin Khoo, Senior Market Analyst at VT Market.
Some silver and gold ETFs saw sharp declines, with certain funds dropping as much as 21 per cent. “Today’s sharp slump in silver and gold ETFs reflects an abrupt shift in macro sentiment rather than a fundamental breakdown in precious metals,” Khoo said. “The ETF correction looks like profit-taking and risk-rebalancing as equity markets rally.”
Will silver fall further?
Technical analysts are watching key support levels to gauge whether the correction will deepen. Kalantri identified silver support at $90.10-$87.75 globally and ₹3,04,810-2,92,170 domestically, with resistance at $95.15-$97 and ₹3,20,810-3,24,470 respectively.
Ponmudi R, CEO of Enrich Money, maintained a cautiously bullish outlook. “COMEX Silver is trading firm near $92–$93 after recently touching record highs above $95.80. While $90–$92 may see brief consolidation, a decisive move above $95 could accelerate the rally toward the psychological $100+ zone,” he said. For Indian markets, he noted that “sustained strength above ₹3,15,000 keeps the upside bias intact, with breakout targets placed at ₹3,35,000–₹3,50,000 and beyond.”
However, Anand Rathi Research Team offered a reality check on silver’s role in portfolios. “Long-term volatility (1996–2025): Gold approximately 15 per cent versus Silver approximately 25 per cent versus Nifty 50 approximately 25 per cent,” they noted, highlighting silver’s high-risk nature. Their analysis showed that while Nifty 50 delivered approximately 11-12 per cent CAGR over 1996-2025, gold managed about 9 per cent, and silver lagged at roughly 5 per cent. “Equities drive wealth; gold improves resilience, silver remains tactical and cyclical,” they concluded.
The structural story remains intact
Despite the correction, fundamental drivers remain supportive. “With structural drivers such as central-bank accumulation, long-term demand and inflation hedging undiminished, disciplined investors may see this correction as a strategic accumulation zone,” Khoo said, though he cautioned against “aggressive short-term speculation given ongoing volatility.”
Kalantri noted that “uncertainty surrounding US trade tariffs and the prevailing sell-America narrative continue to underpin safe-haven demand, while rupee weakness is supporting domestic bullion prices.”
For now, the correction appears to be profit-taking after an extraordinary rally rather than a reversal of silver’s long-term bullish trend driven by industrial demand from solar, EVs, and electronics sectors.
Published on January 22, 2026
