On January 16, 2026, silver rates on India's Multi-Commodity Exchange (MCX) experienced a sharp decline, falling by over ₹4,000 per kilogram, specifically ₹4,027 for March futures contracts. This significant drop, representing nearly 2%, brought the price to ₹2,87,550 per kg in the early morning trading session. The fall marked an end to a five-day record-breaking rally for the precious white metal. The primary driver behind this correction was a robust US dollar, which surged to a six-week high. The dollar's strength was fueled by unexpectedly positive US economic data, specifically a decline in weekly jobless claims, indicating a resilient labor market. A stronger US dollar typically makes dollar-denominated commodities like silver more expensive for holders of other currencies, leading to reduced demand and price falls. The dollar index, tracking the greenback against major global currencies, climbed 0.24% to 99.31, briefly touching 99.49, its strongest level since December 2. Experts also noted that an easing of geopolitical tensions, particularly a perceived softer stance by President Donald Trump on Iran, contributed to a reduction in silver's safe-haven appeal. This combination of a strengthening dollar due to economic data and diminishing safe-haven demand exerted significant selling pressure on both gold and silver in international and domestic markets. Spot silver also saw a decline of 0.8% internationally. This event underscores the interconnectedness of global economic indicators and commodity markets, directly impacting Indian investors and consumers.