Silver Prices Dip Below ₹2.40 Lakh: Is Now the Perfect Time to Invest in the Precious Metal?

MCX silver prices exhibited weakness in today’s trading session, with futures for May expiry declining to approximately ₹2,37,100 per kg, a decrease of ₹2,818 or 1.17%. Opening at ₹2,35,850, the metal reached an intraday high of ₹2,37,589, while the day’s low was recorded at ₹2,35,133, indicating noticeable volatility. The persistent downward pressure on silver prices reflects cautious sentiment in the commodities market amidst evolving geopolitical dynamics and a robust US dollar.

The ongoing decline in silver prices can be attributed to several interrelated factors. A notable element is the fragile state of ceasefire negotiations, which has diminished the safe-haven demand typically associated with precious metals. Concurrently, a firm US dollar and elevated bond yields have deterred investment in gold and silver, as macroeconomic indicators remain unfavorable. Furthermore, a rebound in oil prices, combined with a broader risk-on sentiment in equities, has prompted profit booking, exacerbating the downward trajectory in silver prices. This phenomenon is further reinforced by historical patterns where decreased geopolitical tensions provoke short-term sell-offs in precious metals.

Looking ahead, the short-term outlook for traders and investors in the silver market appears cautious. Immediate resistance is noted at ₹2,46,500, while support is identified at ₹2,36,000; a breach of this level could lead to further declines towards ₹2,34,500. Analysts recommend a sell-on-rise strategy below ₹2,40,000, targeting the identified support levels for potential short-term gains. As market conditions unfold, maintaining vigilance regarding macroeconomic indicators and geopolitical developments will be crucial for navigating the silver market effectively.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)