Silver prices on MCX have taken a hit, falling ₹25,500 per kilogram to reach ₹2,22,234. This marks a staggering 21% decline month-to-date, with a 1.5% drop just on March 19.
On the same day, silver prices on MCX were recorded at ₹2,44,342 per kg before the downturn. The decline is attributed to a stronger dollar, which has limited demand for precious metals like gold and silver.
Geopolitical tensions have also played a significant role, pushing oil and gas prices to multi-year highs, further complicating the market landscape. As Jateen Trivedi noted, “Gold remains technically weak, with resistance now shifting lower towards ₹1,50,000, while key support is seen in the ₹1,44,000– ₹1,42,000 zone.”
The Federal Reserve’s recent projection of just one rate cut this year has added to the uncertainty. Fed officials have remarked that the ongoing conflict has made the outlook for the US economy increasingly “uncertain.” This environment typically supports safe-haven demand, yet the current market dynamics are proving challenging.
Spot silver did see a brief rise of 1.5%, reaching $76.52 per ounce, but the overall trend remains downward. Investors are closely monitoring these developments as they navigate a volatile market.
Details remain unconfirmed regarding future price movements, but analysts are keeping a close watch on geopolitical developments and monetary policy shifts that could further impact silver prices.
