Silver (XAG/USD) prices experienced a sharp decline on January 8, 2026, falling by nearly 5% to trade around $74.36 per ounce at 13:43 GMT. This significant drop has put a critical uptrend line, which has supported the rally since November, at risk of failure, specifically testing the $74.03 level. The immediate pressure on silver prices stems from an anticipated commodity index rebalancing. Citigroup has issued a warning that approximately $6.8 billion in silver futures face liquidation between January 9 and 15, equivalent to about 12% of the open interest on Comex. This massive outflow could intensify selling pressure on the metal. Technical analysis indicates that a sustained break below the $70.07 swing bottom could lead to an accelerated decline towards the $64.79 to $60.25 retracement zone. While the FXEmpire article highlights the immediate bearish risks, other financial analyses offer a mixed outlook. Some sources suggest silver rebounded slightly on January 9, buoyed by safe-haven demand amid global caution ahead of key US jobs data. However, the overarching sentiment points to potential short-term volatility. Despite the current corrections, the long-term fundamentals for silver remain broadly positive, driven by strong industrial demand, particularly from sectors like solar PV, electronics, and AI chips, as well as its role as a safe-haven asset amidst geopolitical tensions. Experts advise investors to exercise caution and consider an exit strategy if the critical trendline fails, while some Indian analysts recommend accumulating silver on dips for long-term gains, forecasting prices to reach as high as Rs 1.5 lakh per kilogramme in the long term. This news is highly relevant to an Indian audience given India's significant investment and consumption of silver. The dual nature of silver as both an industrial and a precious metal means its price is influenced by a complex interplay of economic factors and investor sentiment globally.