Silver Price Rises After Sharp Fall: MCX Silver Near ₹2.26 Lakh As Yields, Dollar Keep Gains In Check

Silver prices recovered slightly on Wednesday, September 30, after two consecutive sessions of sharp losses. MCX December silver was trading 0.43% higher at ₹2,26,270 per kg around 9:13 am, after falling nearly ₹10,000 per kg over the previous two sessions.

The recovery follows a 0.99% fall on Tuesday and a 3.09% decline on Monday. MCX silver December futures closed at ₹2,25,200 per kg on September 29, down ₹2,242, after falling ₹7,254 in the previous session.

Silver is now trying to stabilise after the recent sell-off, but gains remain limited as the dollar stays firm and US bond yields remain high. Markets are also waiting for fresh US inflation data, which could influence expectations for the Federal Reserve's next move on interest rates.

Why Is Silver Price Moving Today?

The rise in silver comes after the metal's steep fall earlier this week, but the broader pressure has not disappeared. Higher US Treasury yields and a stronger dollar have been weighing on precious metals, while crude oil above $100 a barrel continues to keep inflation concerns alive.

For silver, the pressure is sharper because the metal is also closely linked to industrial demand. Any concern over higher borrowing costs or slower economic activity can weigh on both its investment demand and industrial-use outlook.

The dollar index was around 101.40 on Wednesday, while the rupee was trading near 95.97 against the US dollar. Firm US yields and the dollar have therefore kept the recovery in silver limited.

Silver Price Outlook: Can MCX Silver Hold ₹2.15 Lakh?

Anindya Banerjee, Head of Research – Currency, Commodities and Interest Rates at Kotak Neo, said that the dominant force in the market is the rise in global interest rates rather than oil headlines alone. He said the energy shock is feeding into bond markets and raising the cost of capital globally, putting pressure on precious metals.

For silver, Banerjee sees $59 as an important short-term level. A break below it could open the way towards $57-$56.50, while $62-$63 remains a major resistance zone. On the domestic market, he had identified ₹2.31 lakh as an important level, with a break below it raising the risk of a move towards ₹2.15 lakh.

The next major triggers for silver are US inflation data and labour-market data, along with movements in Treasury yields and the dollar. A softer US data set could ease rate concerns and give silver more room to recover, while another rise in yields could put the metal under renewed pressure.

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