Daijiworld Media Network - Mumbai
Mumbai, Jan 8: Silver prices witnessed a steep decline on Thursday as heightened selling pressure emerged ahead of the annual rebalancing of global commodity indices and the release of crucial US economic indicators.
On the Multi Commodity Exchange (MCX), silver prices dropped nearly 3.5 per cent during the session, slipping below the Rs 2,42,000 per kilogram mark. The sharp fall was attributed largely to expectations that passive investment funds would trim their exposure to precious metals futures in line with revised index weightings.
Market participants said the selling pressure appeared stronger than usual, coming on the back of a sustained rally in gold and silver over the past few months. During the session, silver traded in a wide range, moving between an intraday low of Rs 2,48,163 and a high of Rs 2,51,889, compared with the previous close of Rs 2,50,605.
The weakness followed an already turbulent previous session, when MCX silver plunged by as much as Rs 11,700 per kilogram to hit a low of Rs 2,47,100.
According to market analysts, gold prices in the domestic market have support in the range of Rs 1,36,550 to Rs 1,35,310, with resistance seen between Rs 1,39,350 and Rs 1,40,670. For silver, key support levels are placed at Rs 2,46,810 and Rs 2,42,170, while resistance is expected near Rs 2,55,810 and Rs 2,58,470.
Experts noted that the primary accumulation zone for silver remains between Rs 2,45,000 and Rs 2,48,000, underlining its status as a high-beta performer within the precious metals space.
In overseas markets, COMEX silver showed only a modest recovery. Prices erased early gains and were trading marginally higher at $77.780 per ounce. Earlier in the day, silver had climbed to an intraday high of $78.875 per ounce, rising about 1.5 per cent after the previous session’s sell-off.
Market watchers said that a decisive move above the $78.50–$79.00 zone could open the door for further upside, while the $77.00–$77.50 range continues to offer an attractive accumulation opportunity, with no major higher-timeframe reversal signals currently evident.
Overall, traders remain cautious as index rebalancing flows, coupled with impending US macroeconomic data, are expected to keep silver prices volatile in the near term.