Silver Prices See High Intraday Volatility

Chennai: Silver prices on Wednesday remained highly volatile as speculative buying kept driving the market.

Silver witnessed extreme intraday volatility in global markets. Prices surged from $104 to $117.73, then crashed below $102 and recovered to $112. Even in the Multi Commodity Exchange, silver prices saw an intra-day low of Rs 3,64,821 per kg and a high of Rs 3,83,100.

According to Kedia Commodities, sharp moves occurred without any negative fundamental trigger. “Silver markets experienced one of their most volatile sessions in recent history, underlining how quickly a commodity boom can transition into commodity mania. A nearly $16 swing within a single trading day is highly unusual for silver and reflects a market increasingly driven by sentiment and positioning, rather than incremental changes in fundamentals,” said Ajay Kedia, MD, Kedia Commodities.

Silver’s broader rally continues to be supported by strong structural fundamentals. Global mine supply growth remains constrained due to limited new investments and declining ore grades, while industrial demand from solar energy, electronics, electric vehicles, and power infrastructure continues to rise steadily.

However, the pace of the recent price rise far exceeded the speed at which fundamentals typically evolve. This attracted aggressive speculative participation, particularly in futures markets, pushing prices into overextended territory and increasing vulnerability to sharp corrections.

Developments in the physical silver market also played a role in amplifying volatility. Deliverable inventories remained tight, and physical availability continues to face constraints due to steady industrial offtake and limited supply flexibility.

Physical premiums remained firm across several regions despite sharp intraday price swings.

“Investors are advised to remain cautious, reduce leverage, and avoid chasing price moves. In commodity manias, rallies can be spectacular, but corrections often arrive faster and deeper than expected. Discipline and risk management, rather than conviction alone, are now critical in navigating the silver market,” said Kedia.