Mumbai: Silver prices fell sharply on Monday as a global sell-off in precious metals pushed the December futures contract below ₹2.28 lakh per kg on the (MCX).
At noon, MCX December silver futures traded at ₹2,27,494 per kg, down ₹7,202, or 3.07%, from the previous close of ₹2,34,696. The decline brought prices close to a support zone watched by commodity traders.
Analysts placed immediate support at ₹2,27,000–₹2,28,000, followed by ₹2,23,000–₹2,24,000. On the upside, they identified resistance at ₹2,32,000–₹2,33,000 and then ₹2,36,000–₹2,37,000. The relative strength index, or RSI, stood at 41.12, pointing to weakening price momentum.
Oil and US Rates Weigh on Metals
Rising crude oil prices have renewed concerns about global inflation. That has strengthened expectations that the could keep interest rates elevated for longer or tighten policy further.
Higher bond yields can make silver less attractive because the metal pays no interest. A stronger US dollar can also weigh on demand from buyers using other currencies.
COMEX Silver Extends Losses
International silver prices reflected the weakness. COMEX silver opened at $64.66 and traded near $62.40, down 3.72% during the session. Prices slipped below the $63.50–$64.00 range, which analysts now see as immediate resistance.
Market watchers placed the next resistance at $65.50–$66.00. They identified support at $61.50–$62.00, followed by $59.50–$60.00. Silver was trading below its 20-, 50-, 100- and 200-day exponential moving averages.
Rupee Remains Under Pressure
The USD/INR pair opened at 95.80 and traded just below 96. Analysts cited 96.00–96.10 as immediate resistance and 95.70–95.80 as the first support range. A weaker rupee can affect the domestic cost of imported precious metals.