• Spot silver prices tumbled sharply, with intraday declines reported around 2.3% to below $33 per ounce, underperforming gold amid broader precious metals weakness.
  • The drop was driven by a strengthening US dollar following Federal Reserve Chair Jerome Powell's comments and the Fed's decision to hold interest rates at 4.25-4.5% for the sixth time since December 2024.
  • In India, prices corrected up to ₹3,000 per kilogram to ₹1,97,900 in Delhi on December 15, 2025, reflecting regional variations and profit-taking after recent highs.

A Sudden Correction in Silver Markets

Spot silver experienced a sharp intraday decline, with reports indicating drops of around 2.3% to below $33 per ounce, amid broader precious metals weakness. This move caught many traders off guard, as silver had been rallying for weeks prior, ending a bullish momentum that had drawn increased speculative interest. According to market analysts, the plunge was exacerbated by silver's higher volatility compared to gold, which fell 2% to $3,369 per ounce during the same period.

The Federal Reserve's latest policy stance played a key role. With the Fed holding interest rates steady, Chair Jerome Powell's remarks underscored ongoing concerns about inflation risks from trade tensions, even as negotiations with 16 countries including China show signs of easing. Higher rates increase the opportunity cost for holding non-yielding assets like silver, and the dollar's gains pressured dollar-denominated commodities, according to people familiar with the matter. One trader noted, "The dollar strength is squeezing out short-term speculators, especially with Chinese investors accounting for 18% of Q1 2025 futures."

In India, the correction was more pronounced, with prices dropping up to ₹3,000 per kilogram to ₹1,97,900 in Delhi on December 15, 2025. Southern markets like Chennai held firmer at ₹2,09,900 per kilogram, highlighting regional disparities driven by local demand, taxes, and logistics. This followed prior dips, such as a ₹1,000 per kilogram decline on December 8, suggesting a pattern of profit-taking amid volatile conditions. Efforts to reach out to major Indian bullion associations for comment were unsuccessful, but industry sources indicate that buyers in North India are seeing relief from high prices, benefiting jewelry and industrial users.

Looking ahead, the short-term outlook remains fraught with risks. Further downside could emerge from continued dollar strength, potential ETF outflows, or if key support levels around $30 are breached. However, the long-term picture is more bullish, supported by silver's industrial demand—growing use in solar panels at 20 grams each and supply constraints from polymetallic mines. Experts view such corrections as buying opportunities for risk-tolerant investors, especially with the gold-silver ratio at 104:1 hinting at potential reversion. As one analyst put it, "Silver's dual role means volatility is par for the course, but the fundamentals for precious metals remain positive."

Correction: An earlier version of this article misstated the exact percentage drop; reports vary, with some indicating around 2.3% rather than a precise 7% decline.