Editor’s Note
Silver prices on India’s MCX fell sharply today as investors took profits following a recent rally. This brief market update highlights the commodity’s volatility.
On the Multi Commodity Exchange (MCX), the price of silver for March delivery fell by 5,422 rupees or 2.06 percent to 257,198 rupees per kilogram. Previously, on Monday, silver had closed at 262,620 rupees per kilogram. According to traders, investors booked profits after the sharp rally seen in recent days, leading to a steep decline in silver prices.
The impact of selling was also seen in the gold futures market. On the MCX, the price of gold contracts for April delivery decreased by 677 rupees or 0.43 percent to 157,389 rupees per 10 grams. In the previous trading session, gold’s closing price was 158,066 rupees per 10 grams. Experts say that gold prices are unable to sustain at high levels in the domestic market.
Traders reported that strength in the US dollar also had a negative impact on gold and silver prices. A stronger dollar makes precious metals more expensive for investors using other currencies, affecting demand.
Weakness was also observed in precious metals in the international market. On COMEX, silver for March delivery fell 1.20 percent to $81.25 per ounce. In the previous session, it had closed at $82.23 per ounce. Similarly, on COMEX, gold for April delivery dropped by $24.19 or 0.48 percent to $5,055.21 per ounce. On Monday, its closing price was $5,079.40 per ounce.
Market experts believe that the direction of gold and silver prices in the coming days will depend on global economic cues, the dollar’s movement, and investor strategy. For now, the pressure of profit-booking at higher levels is likely to continue.
