Why silver is down 2% on MCX today, May 14: Profit-taking, Trump-Xi talks and Iran ceasefire hopes weigh after Rs 21,000 surge

Silver prices declined on MCX on Thursday, May 14, as traders booked profits after a sharp rally in the previous session. The fall came even as global silver prices remained elevated after hitting their highest settlement level in more than two months.

MCX silver futures for July 2026 delivery fell Rs 3,359 or 1.1% to Rs 2,96,879 per kg in early trade. The metal was down nearly 2% during the session, cooling off after one of its strongest recent single-day moves.

The decline follows a dramatic rally on May 13, when MCX silver surged by nearly Rs 21,000 per kg and touched an intraday high of Rs 3,01,429 per kg, crossing the Rs 3 lakh mark for the first time in four months. Internationally, front-month silver futures closed 4.4% higher at $88.89 per troy ounce on May 13, marking gains in 8 of the past 10 sessions.

Why silver surged on May 13

The sharp rally in domestic silver prices was driven by two major triggers.

The first was India-specific. The government raised customs duty on gold, silver and other precious metals from 6% to 15%, effective midnight May 13. The new structure includes 10% basic customs duty and 5% Agriculture Infrastructure and Development Cess. The duty hike immediately raised the landed cost of imported silver in India, leading to a sharp pass-through in domestic prices.

The second trigger came from global markets. Silver had already been gaining momentum internationally due to safe-haven demand linked to the Middle East conflict and rising industrial demand expectations from artificial intelligence infrastructure, semiconductors, data centre components, electric vehicles and solar-related applications.

Why silver is falling today

The May 14 decline is mainly a consolidation after an extraordinary rally. A single-day jump of nearly Rs 21,000 per kg is an unusually sharp move, and traders appear to be booking profits at elevated levels.

Markets are also closely tracking talks between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. Any signs of progress in reducing tensions between the world’s two largest economies could influence risk sentiment and commodity positioning.

Iran ceasefire hopes are also being watched closely. Any indication of diplomatic progress or a possible reduction in Strait of Hormuz-related risks could reduce the geopolitical risk premium that has supported safe-haven demand for precious metals.

Gold prices also moved lower on May 14, reflecting similar profit-taking. MCX gold futures for June 2026 delivery fell Rs 1,159 or 0.7% to Rs 1,61,027 per 10 grams. In the previous session, gold had gained nearly Rs 9,000 or around 6%, driven by the same duty hike and safe-haven factors.

Overall, silver’s fall on May 14 appears to be a cooling-off move after a historic domestic surge, rather than a complete reversal in trend. Traders are reacting to profit-booking, Trump-Xi talks, Iran ceasefire hopes and the broader pullback in precious metals after the sharp duty-led rally.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Fingo is not liable for any losses arising from the use of this information.