MCX Silver Slides from Rs 2,92,960 Record to Rs 2,85,513 as Dollar Hits 6-Week High, Spot Near $91.68

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Silver prices today opened on a weak note and extended losses quickly. Early trade on Friday reflected heavy selling pressure. Traders reacted to global signals and a stronger US dollar. The fall came after silver touched record highs in the previous session. The sharp reversal surprised many market participants.

On the Multi-Commodity Exchange, MCX silver prices opened with a clear gap-down. The opening price stood near Rs. 2,87,127 per kg. Selling intensified within minutes. Prices slipped to an intraday low of Rs. 2,85,513 per kg. The move marked a fall of nearly 2%. The decline erased over Rs. 4,000 per kg in early deals. On Thursday, MCX silver prices had climbed to a lifetime high of Rs. 2,92,960 per kg.

Global Market Pressure Weighs on Silver

The global market added to the pressure. Spot silver fell by nearly 0.8% to around $91.68 per ounce. Prices had earlier hit a record high near $93.57 per ounce. The sudden turnaround reflected a shift in global risk sentiment. Investors reduced exposure to precious metals after fresh economic cues from the United States.

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The main trigger behind the fall remained US dollar strength. The dollar index climbed to a six-week high. It rose above the 99 mark and touched levels last seen in early December. Strong US job data pushed the dollar higher. Jobless claims fell more than expected. The data signaled resilience in the US economy. A stronger dollar usually weighs on commodities like silver. A higher dollar value makes metals costly for international buyers.

Dollar Strength and Easing Tensions Hit Demand

Market experts also pointed to easing geopolitical concerns. Reduced tension between the US and Iran trimmed safe-haven demand. Gold and silver often benefit during uncertainty. Calm global cues reduced that appeal. Anuj Gupta, a SEBI-registered commodity expert, said dollar strength and easing tensions hit bullion demand sharply.

Silver rate today also faced profit booking after the recent rally. Prices had risen fast in a short period. Traders chose to lock gains near record highs. The move increased volatility in MCX silver prices during early trade.

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Silver Price Outlook Remains Mixed

The silver price outlook remains mixed for the day. Jigar Trivedi of Reliance Securities expects further softness. He sees MCX silver drifting toward Rs. 2,86,000 per kg. Rahul Kalantri of Mehta Equities highlighted key technical levels. He placed support near $86.10 and $84.75 internationally. Resistance stands near $92.15 and $94.40. In rupee terms, support lies close to Rs. 2,84,170.

A contrasting view came from Ponmudi R of Enrich Money. He noted strong dip buying near lower levels. He described silver as a high beta performer among precious metals. Sustained trade above Rs. 2,90,000 could revive upside momentum. A break above Rs. 2,92,000 may open the path toward Rs. 3,00,000. A slip below Rs. 2,85,000 could test Rs. 2,80,000, where demand may emerge.

Spot silver in India showed relative firmness despite futures pressure. Local demand and industrial usage supported spot prices. The divergence highlighted regional demand strength.

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Disclaimer: This story serves educational purposes only. Please consult a qualified investment advisor before making investment decisions.