Silver Bulls Take A Breather After Three-Day Rally; Will Price Stay Above Rs 3 Lakh? Check Key MCX Levels

Silver prices witnessed profit-booking on Thursday after a sharp three-session rally, with traders closely watching whether the metal can sustain above the psychologically crucial Rs 3 lakh mark on the Multi Commodity Exchange (MCX).

According to Kotak Securities, MCX Silver July futures are currently entering a consolidation phase after the recent surge, with key technical levels likely to dictate the next directional move.

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“Silver prices have seen some cooling after the recent rally, but the broader trend remains constructive as long as prices sustain above immediate support zones,” Kotak said in a note.

The brokerage highlighted that immediate support for MCX Silver July futures is seen near Rs 2,98,500, followed by a stronger base around Rs 2,95,000. A decisive break below these levels could trigger further downside pressure in the near term.

On the upside, Kotak said resistance is placed in the Rs 3,05,000 to Rs 3,08,000 range. A sustained move above this band may revive bullish momentum and open the door for fresh highs.

Spot silver prices, meanwhile, remained supported by continued industrial demand expectations and lingering uncertainty around global macroeconomic conditions.

Analysts said investors are also monitoring the US Federal Reserve's policy outlook, dollar movement and bond yields, which continue to influence precious metal sentiment globally.

“Any weakness in the dollar index or decline in US Treasury yields could continue to offer support to silver prices,” Kotak added.

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