- Silver prices fell on September 11 due to rising oil prices and US Fed rate uncertainty
- Silver futures traded at Rs 2,31,270 per kg, down 1.21% from the previous session close
- Crude oil surge linked to US-Iran conflict increased inflation fears impacting silver prices
Silver prices declined in international markets on Friday, September 11, as rising crude oil prices and uncertainty over the US Federal Reserve's interest-rate dampened sentiment toward precious metals.
Silver futures on Friday were trading at an LTP of Rs 2,31,270 per kg. The contract opened at Rs 2,31,569, touched an intraday low of Rs 2,30,270 and a high of Rs 2,32,001. It had settled at Rs 2,34,099 in the previous session, down Rs 2,829, or 1.21%. The difference between Friday's low and the previous day's close was Rs 3,829.
Silver trading volume stood at 1,160 lots, while open interest was 13,324 lots. The traded value was Rs 803 lakh. Silver futures will expire on Dec. 4, 2026.
Possible Reasons For The Decline
Silver prices declined sharply on the MCX after a 4.6% fall in international prices. This is due to surge in crude oil prices which has increased inflation concerns. The rally in oil prices due to US-Iran conflict has resulted into losses in stocks and bonds with the latest inflation data driving fears that the Federal Reserve will increase rates soon amid pressures from higher energy costs.
Ponmudi R, CEO of Enrich Money, says COMEX Silver is testing the $64.000-63.500 support zone, down a sharp 1.92% — underperforming gold today as the metals complex comes under broad pressure. A decisive break below 63.500 could drag the price toward next support at $62.000-61.500. RSI at 44, falling hard from last week's mid-50s, confirms silver has turned decisively weaker, in line with the broader risk-off tone in precious metals.
What Should Be The Strategy
MCX Silver opened with a sharp gap-down and was trading below the key resistance zone of Rs 2,32,000, down 1.4% and underperforming gold in the domestic market. Ponmudi R said the immediate resistance is placed at Rs 2,32,000-2,33,000, while a breakout above this range could pave the way for the next resistance zone of Rs 2,36,000-2,37,000.
On the downside, immediate support lies at Rs 2,30,000-2,29,000, followed by a stronger support band at Rs 2,26,000-2,25,000. The Relative Strength Index (RSI) is hovering near 44 and continues to weaken, indicating that silver remains the softer performer within the precious metals complex.
Ponmudi said that the near-term bias remains cautiously negative as long as prices stay below Rs 2,32,000. A sustained hold above Rs 2,30,000 is needed to stabilise sentiment, while a break below that level could trigger a deeper correction towards Rs 2,25,000.
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