Why Is Silver Price Falling Today, August 24: MCX Silver Snaps 3-Day Rally To Trade Near Rs 2.46 Lakh
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Silver prices snapped a three-day gaining streak on Monday even as gold continued to climb, with the metal pulling back from recent highs as investors booked profits and turned their attention to key US inflation data due later this week.
MCX silver September futures were trading at Rs 2,46,136 per kg, down Rs 461 from the previous close of Rs 2,46,597, around the time of writing.
The contract opened lower at Rs 2,45,597 and slipped further during the session to a low of Rs 2,44,815, nearly Rs 1,782 below the previous close. It later touched a high of Rs 2,46,475.
In the international market, Comex silver was down $0.37 at $69.16 per ounce. The contract opened at $69.34 against its previous close of $69.53.
Why Is Silver Price Falling Today?
Even as a weaker US dollar supported gold, silver failed to hold on to its recent gains and pulled back after three consecutive sessions of advances.
The decline came as broader commodity markets also weakened, with crude oil prices falling more than a dollar a barrel as investors booked profits ahead of an expected US announcement on fresh sanctions against Iran.
Silver's recent gains also left the metal vulnerable to some profit-taking, particularly after the three-session rally.
Markets are now focused on the July Personal Consumption Expenditures (PCE) price index and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium later this week. Both events could influence expectations around US interest rates and, in turn, the direction of silver prices.
Silver: Key Levels To Watch
According to Kotak Neo Research, MCX silver September futures have support at Rs 2,42,996, Rs 2,41,666 and Rs 2,37,358, while resistance is placed at Rs 2,47,304, Rs 2,48,634 and Rs 2,52,942.
The firm has marked Rs 2,41,666 as the buying zone for the contract, with a stop loss below Rs 2,37,358. The selling zone is at Rs 2,48,634, with a stop loss above Rs 2,52,942.
For the December contract, Kotak Neo Research has support at Rs 2,50,235, Rs 2,48,926 and Rs 2,44,688, while resistance is placed at Rs 2,54,473, Rs 2,55,782 and Rs 2,60,020.
The buying zone is at Rs 2,48,926, with a stop loss below Rs 2,44,688. The selling zone is at Rs 2,55,782, with a stop loss above Rs 2,60,020.
In the international market, spot silver has support at $68.05, $67.45 and $65.50, while resistance is placed at $70.00, $70.60 and $72.50, according to the firm.
MCX Silver Price Today
At the time of writing, MCX silver September futures were trading at Rs 2,46,136 per kg, down Rs 461 from the previous close.
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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 has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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