Silver rate today: Silver prices extended their fall as they cracked nearly 3.5% to trade below ₹2,42,000 on Multi Commodity Exchange (MCX) on Thursday, January 8, ahead of the annual rebalancing of commodity index and release of key US economic data.
As per a Bloomberg report, passive tracking funds are expected to sell precious metals futures on Thursday to match the new weightings required by the indexes, with sales expected to be higher than usual amid the massive rally seen in gold and silver prices.
The white metal touched an intraday low of ₹2,48,163 and an intraday high of ₹2,51,889 as against the last closing level of ₹2,50,605.
Silver prices on MCX plunged as much as ₹11,700 per kilogram to the day's low of ₹2,47,100 in the last trading session.
In overseas markets, COMEX silver pared its early-morning gains and was trading slightly higher at $77.780 an ounce. COMEX silver opened higher after Wednesday's selloff and climbed to an intraday peak of $78.875 per ounce — gaining about 1.5%.
“Gold and silver prices declined sharply in a highly volatile session on Wednesday after U.S. ADP non-farm employment data exceeded expectations by 41,000. The rebound in the dollar index against major global currencies capped gains in precious metals. However, weaker-than-expected U.S. JOLTS job openings provided support to gold and silver at lower levels,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Is it the right time to invest in silver?
According to Anuj Gupta, Director at Ya Wealth, the COMEX silver price is facing a minor hurdle at $79 and a crucial hurdle at $82 per ounce levels. Upon breaking above $79 decisively, the white metal may soon reach the $82 level, said the expert.
“A bullish or a bearish trend can be assumed only when the white silver breaks above $82 per ounce levels on a closing basis. Once this happens, we can expect the precious bullion to touch $90 per ounce levels soon,” said Gupta.
Meanwhile, Client Associates continues to hold an underweight stance on silver and is recommending that clients avoid initiating new positions at current prices, citing an unfavourable risk–reward outlook.
Commenting on the technical outlook, Kalantri of Mehta Equities said, “Silver has support at $75.10-73.45 while resistance is at $80.05-82.40. On MCX, silver has support at Rs2,46,810, 2,42,170, while resistance is at Rs2,55,810, 2,58,470.”
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
