Silver rate today falls over ₹4,000/kg on MCX as US dollar gains strength on strong job data

The silver rate today fell nearly 2% or ₹4,000/kg on the Multi-Commodity Exchange (MCX) in the early morning session on Friday, January 16, due to selling pressure and weak global cues.

MCX silver prices opened with a downside gap at ₹2,87,127 per kg and slipped to an intraday low of ₹2,85,513 per kg within minutes of the opening bell. On Thursday, MCX silver touched a new high of ₹2,92,960 per kg.

Meanwhile, on the international front, spot silver fell 0.8% to $91.6861 per ounce, after reaching a record high of $93.57 earlier in the session.

What's behind the fall in silver prices today?

The white metal fell today following a surge in the US dollar to a six-week peak, triggered by an unexpected decline in jobless claims. The dollar index, which tracks the greenback against a basket of currencies including the euro and yen, climbed 0.24% to 99.31, briefly touching 99.49—the strongest level since December 2.

“ The major reason for the fall in the gold and silver rates today is the US Dollar gaining strength against major global currencies. This could become possible due to the strong US unemployment data. Ease in the US-Iran tension after Donald Trump's changed stance on Iran. This ease in the geopolitical tension has hit gold and silver's demand as a safe-haven,” said Anuj Gupta, a SEBI-registered commodity expert.

Silver price outlook

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, MCX silver prices for the March contract are expected to soften during the day’s trading session, potentially slipping to around ₹2,86,000 per kg.

Meanwhile, Rahul Kalantri, VP of commodities at Mehta Equities, believes that silver has support at $86.10 and $84.75, while resistance is at $92.15 and $94.40. In INR, the white metal has support at ₹2,88,810 and ₹2,84,170, while resistance is at ₹2,94,810 and ₹2,96,470, he added.

On the other hand, Ponmudi R, CEO of Enrich Money, said that MCX Silver is trading near ₹2,87,000 after posting recent highs around ₹2,92,960, firmly entrenched in a strong bullish channel. The price action reflects aggressive absorption on dips, positioning silver as a high-beta outperformer within the precious metals space.

“ Sustained strength above ₹2,90,000 keeps the upside trajectory intact. A clear breakout beyond ₹2,92,000 could pave the way toward ₹3,00,000 and higher levels. On the downside, any corrective move below ₹2,85,000 may test the ₹2,80,000 zone, where fresh buying interest is expected to emerge,” Ponmudi said.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.