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by IANS |
Mumbai, Jan 8 (IANS) Silver prices fell sharply on Thursday as selling pressure increased ahead of the annual rebalancing of global commodity indexes and the release of key US economic data.
On the Multi Commodity Exchange (MCX), silver dropped nearly 3.5 per cent to trade below Rs 2,42,000 per kilogram during the session.
The decline came after passive investment funds were expected to reduce their holdings in precious metals futures to match new index weightings.
The selling is seen as heavier than usual following the strong rally in gold and silver in recent months.
While writing the article, silver moved between an intra-day low of Rs 2,48,163 and a high of Rs 2,51,889, compared with the previous close of Rs 2,50,605.
In the previous trading session, MCX silver had already fallen sharply, slipping by as much as Rs 11,700 per kilogram to touch a low of Rs 2,47,100.
“In INR gold has support at Rs 1,36,550-1,35,310 while resistance at Rs 1,39,350-1,40,670,” an expert said.
“Silver has support at Rs 2,46,810, 2,42,170 while resistance at Rs 2,55,810, 2,58,470,” the analyst added.
The key accumulation zone remains Rs 2,45,000–Rs 2,48,000 -- highlighting silver’s role as a high-beta outperformer within the precious metals complex, as per market watchers.
In international markets, COMEX silver showed limited recovery. Prices erased early gains and were trading slightly higher at $77.780 per ounce.
Earlier in the session, silver had risen to an intra-day high of $78.875 per ounce, gaining around 1.5 per cent after Wednesday’s selloff.
“A clean breakout above $4,500 could quickly open the path toward $4,550–$4,600. The $4,400–$4,420 zone continues to offer an attractive risk-reward accumulation area, with no higher-timeframe reversal signals visible,” market watcher stated.
Market participants remain cautious as index rebalancing-related flows and upcoming US economic data are likely to keep silver prices volatile in the near term.
