MCX silver futures witnessed notable weakness today, falling by 1.17% to ₹ 2,37,100 per kg. This downturn reflects a prevailing sense of caution across the broader commodities market.
The metal opened at ₹ 2,35,850 and struggled throughout the session, testing an intraday low of ₹ 2,35,133. Despite touching an intraday high of ₹ 2,37,589, the overall momentum has been decidedly downward.
Driving Factors Behind Silver Price Pressure
Market experts suggest that near-term pressure on silver prices is rooted in several macroeconomic factors. Weak safe-haven demand is a primary concern for the precious metal sector.Furthermore, the strength of the US dollar and ongoing geopolitical uncertainties are dampening bullish sentiment. Traditionally, periods of reduced global conflict tend to trigger short-term sell-offs in commodities.
Broader market conditions have added to the headwinds. A rebound in oil prices, coupled with a stronger dollar and rising bond yields, has placed strain on silver's trajectory. Profit booking in equities also limited any potential upside.
Analyzing the Technical Levels and Outlook
Analysts have pointed out key technical benchmarks for investors to monitor. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, cited immediate resistance at ₹ 2,46,500.On the downside, crucial support is identified at ₹ 2,36,000. A decisive break below this level could potentially extend losses towards ₹ 2,34,500.
From a strategic viewpoint, one suggested approach is to adopt a sell-on-rise strategy, specifically below the ₹ 2,40,000 mark. This strategy targets levels like ₹ 2,36,000 and ₹ 2,34,500 a kg.
International Trends and Domestic Pricing
Globally, the trend mirrored the domestic slowdown. In international markets, silver slipped to around $73.5 per ounce following a volatile session. This followed a previous surge of 6.3% after a ceasefire announcement.Domestically, the physical market suggests a broader cooling trend. As of April 9, domestic silver prices were recorded near ₹ 255,000/kg.
Experts noted that unfavorable macroeconomic indicators persist. A strong dollar and elevated US yields generally place downward pressure on non-yielding assets like precious metals.
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