On MCX this morning, on January 16, the price of silver fell by about 2% i.e. Rs 4,000 per kg. Due to selling pressure and weak global cues, MCX silver prices opened at Rs 2,87,127 per kg and touched the day’s low of Rs 2,85,513 per kg within minutes. It is noteworthy that on Thursday, MCX silver had reached a new record level of Rs 2,92,960 per kg.
recession in international market also
In the international market, spot silver fell 0.8% to $91.6861 an ounce. Earlier, it had touched a record high of $93.57 an ounce in the session.
Effect of strengthening dollar
This fall in silver has come after the US dollar reached a six-week high. The strengthening of the dollar is being attributed to the unexpected decline in US unemployment claims. The dollar index rose 0.24% to 99.31. This is the strongest level since December 2.
expert opinion
According to SEBI-registered commodity expert Anuj Gupta, the main reason for the fall in gold and silver rates is the strengthening of the US dollar against global currencies. Strong US unemployment figures and the reduction in US-Iran tensions due to Donald Trump’s change in attitude towards Iran have affected the demand for safe-haven.
Gold prices also declined
Gold prices on MCX also fell by almost half a percent on the morning of January 16 amid subdued expectations of a US Fed rate cut and easing of geopolitical tensions. At around 9:05 am, MCX gold (February futures) was trading 0.48% lower at Rs 1,42,434 per 10 grams.
Strong US economic data immediate reasons
The immediate reason for profit booking in gold prices was better than expected US economic data, which pushed the dollar higher. The dollar index is up about 0.20% this week and is on a rise for the third consecutive week. The strengthening of the dollar makes it expensive to buy gold in other currencies, which affects the demand for this metal.
Important levels for silver and gold
According to Rahul Kalantari, VP (Commodities), Mehta Equities, support for silver is at $86.10 and $84.75 while resistance is at $92.15 and $94.40.
In Indian rupee terms, gold has support at Rs 1,42,350 and Rs 1,40,310, while resistance lies at Rs 1,44,350 and Rs 1,45,670. Silver’s support is at Rs 2,88,810 and Rs 2,84,170, while resistance is at Rs 2,94,810 and Rs 2,96,470.
According to Jigar Trivedi, Senior Research Analyst, Reliance Securities, MCX gold (February futures) may fall to Rs 1,42,300 per 10 grams as the environment is slightly weak in terms of dollar also.
