Silver tumbles over Rs 7,000 on MCX, slips below Rs 2.28 lakh amid global sell-off

On Monday, silver prices dropped sharply on the Multi Commodity Exchange (MCX), falling more than Rs 7,000 per kilogram and slipping below the key Rs 2.28 lakh level as precious metals faced a broad‑based sell‑off.

The drop followed higher crude oil prices, which stoked global inflation worries and reinforced expectations that the US Federal Reserve might maintain elevated rates for an extended period or tighten policy further.

Higher interest rates and rising US Treasury yields usually pressure non‑yielding assets like precious metals, while a stronger dollar makes dollar‑priced commodities costlier for foreign buyers.

Silver falls over 3% on MCX

At noon, the December silver futures contract on MCX traded at Rs 2,27,494 per kg, down Rs 7,202 (about 3.07%) from the previous close of Rs 2,34,696.

Analysts noted that the nearest resistance lies between Rs 2,32,000 and Rs 2,33,000, with the next barrier around Rs 2,36,000‑Rs 2,37,000.

On the downside, immediate support is found between Rs 2,27,000 and Rs 2,28,000, followed by a zone around Rs 2,23,000‑Rs 2,24,000.

Analysts also pointed out that the Relative Strength Index (RSI) was at 41.12, below its signal line, signalling weakening momentum.

COMEX silver also under pressure

Silver prices stayed under pressure in global markets as well. COMEX silver opened at $64.66 and hovered around $62.40, down roughly 3.72% for the session.

The metal fell below the $63.50‑$64.00 area, which previously served as support but may now act as resistance. Silver was testing the $61.50‑$62.00 support zone.

“Silver continues to lag behind gold in today’s trade,” market observers noted, citing immediate resistance between $63.50 and $64.00, then $65.50‑$66.00. Support was seen at $61.50‑$62.00, followed by $59.50‑$60.00.

Experts added that silver stayed below its 20‑, 50‑, 100‑ and 200‑day exponential moving averages, with the RSI still trending downwards.

Dollar-rupee movement

Meanwhile, the USD/INR pair opened at 95.80, up 0.13%, and traded just under the 96 level.

Immediate resistance was seen between 96.00 and 96.10, then 96.40‑96.50, while support lay between 95.70‑95.80 and subsequently 95.40‑95.50.

The pair stayed above its key short‑term moving averages. With an RSI of 59.51—above its signal line—the dollar showed a mild bullish bias, implying ongoing pressure on the rupee.

Overall, silver remained under pressure as rising crude prices, inflation worries, higher yields and a stronger dollar continued to weigh on the precious metal.