Silver prices in India witnessed a significant decline for the second straight trading session on Thursday. The drop mirrored weak trends in international markets, driven by investors locking in profits ahead of crucial US economic data and the annual rebalancing of major commodity indices.
Market Performance and Key Levels
On the Multi Commodity Exchange (MCX), March silver futures plunged to an intraday low of ₹240,600 per kilogram. This marks a notable correction of approximately ₹15,000 to ₹16,000 per kg from its recent all-time high. The downward movement was part of a broader sell-off in precious metals.
"Gold and silver extended losses from the previous session, as investors assessed mixed US economic data while geopolitical developments remained a key focus," noted Jigar Trivedi, Senior Research Analyst at Reliance Securities.
What's Driving the Downturn?
Several interconnected factors are pressuring silver rates. The primary catalyst is the strength of the US Dollar, which makes dollar-denominated commodities like silver more expensive for holders of other currencies. Additionally, market participants are engaging in profit-taking before the release of US non-farm payrolls data, a key indicator of the health of the American economy.
Geopolitical tensions also contributed to the cautious mood. Traders monitored developments following US announcements aimed at asserting long-term control over Venezuelan petroleum sales and the related detention of several tankers linked to Caracas.
Analyst Views and Price Outlook
Experts have outlined important support zones that will determine silver's next directional move. Anuj Gupta, Director of Ya Wealth, provided a detailed technical perspective. "Silver rates today are under pressure due to the strong US Dollar," he stated.
Gupta highlighted that on the MCX, immediate support for silver is positioned at ₹2,40,000 per kg. However, a more critical support base lies at ₹2,35,000 per kg. He warned that a decisive break below the ₹2,35,000 level could trigger a further decline, potentially testing the ₹2,22,000 to ₹2,20,000 per kg range.
The market's focus now shifts to global economic cues and currency movements, which will be pivotal for silver's trajectory in the coming sessions.
