Silver Prices Slide Over 1% On MCX As Oil Rally Raises Inflation, Rate Concerns
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MCX silver futures dropped over 1% on Tuesday as a fresh crude oil rally revived inflation worries and Fed rate uncertainty, pulling both global and domestic bullion prices lower.
Silver prices declined over 1% in Indian futures trade on Tuesday, August 18, tracking weaker global prices as investors turned cautious ahead of fresh signals on the US Federal Reserve's interest-rate outlook.
On the Multi Commodity Exchange (MCX), silver futures for December delivery fell Rs 2,535, or 1.04%, to Rs 2.41 lakh per kg, with 4,317 lots changing hands. The decline in domestic prices tracked weakness in global bullion markets, where silver fell 1.78% to $65.01 an ounce.
Why Is Silver Falling Today?
The pullback comes after silver gained 1.7% in the previous session, settling above $65.80 an ounce on Monday, as a weaker dollar and reduced expectations of a prolonged wait for Fed rate cuts had supported the metal.
That support has partly reversed as a fresh rally in crude oil revived concerns over elevated inflation and the possibility of interest rates staying higher for longer, weighing on non-yielding assets such as silver.
The rupee was trading around Rs 95.68 against the US dollar, with higher crude oil prices adding further pressure on the Indian currency. A weaker rupee typically raises the landed cost of imported silver, though on Tuesday this was outweighed by the sharper decline in global prices.
Will Festive Demand Support Silver In India?
Silver has historically been more volatile than gold, with prices influenced by both investment sentiment and expectations around industrial demand. For Indian consumers, near-term price direction will continue to hinge on global bullion trends, the rupee-dollar exchange rate and domestic physical demand, with festive-season buying expected to be a key factor in the months ahead.
Silver Price: Key Levels To Watch
According to Kotak Neo Research, spot silver has support at $64.40 and $63.85, with resistance at $66.05 and $66.55 an ounce.
On MCX, silver September contracts have support at Rs 2,33,775 and Rs 2,32,625, with resistance at Rs 2,37,499 and Rs 2,38,649. The December contract has support at Rs 2,39,760 and Rs 2,38,646, with resistance at Rs 2,43,366 and Rs 2,44,480.
On the technical charts, Kotak Neo Research maintains a sideways-to-bearish bias on MCX silver September futures within a broader range of Rs 2,30,600 to Rs 2,37,400.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto is a business journalist with 8+ years of experience in financial journalism. She covers equity markets, corporate earnings, IPOs, commodities and the economy.
As a reporter with leading business publications, she has tracked financial markets and covered sectors including banking and financial services, retail, consumer goods, advertising and e-commerce.
Outside work, she enjoys travelling, discovering local cultures and spending time in nature.
