Silver prices slide over 2% on MCX amid strong dollar and Fed uncertainty
Silver on India's MCX fell more than 2% as a firmer US dollar and mixed signals from the Federal Reserve weighed on precious metals, with analysts pointing to ₹1.90 lakh per kg as a key support level.
Silver prices on the Multi Commodity Exchange (MCX) dropped by just over 2% on Tuesday, pressured by a strengthening US dollar, lingering inflation concerns and uncertainty about the Federal Reserve's policy direction. The decline came as investors reassessed risk assets ahead of the upcoming Diwali and Dhanteras festivals, which traditionally boost demand for gold and silver.
Market analysts highlighted ₹1.90 lakh per kilogram as a critical support threshold. Should prices breach this level, they warned of further downside, while noting that industrial demand and a persistent supply deficit could support the metal over the longer term.
"The combination of a robust dollar and mixed signals from the Fed has created a bearish bias for precious metals in the short run," said a senior commodity strategist at a leading brokerage.
The broader commodities market has been volatile, with traders closely watching US monetary policy cues and domestic demand patterns as the festive season approaches.