- Silver prices in India fell by Rs 995 to Rs 2,45,602 per kg on Monday
- MCX silver rallied 6.1% over the last three sessions before Monday's dip
- Global spot silver steadied near $69 per ounce, below the $70 mark
Silver prices in India traded lower on Monday, following a muted trend in global prices, amid profit booking after a sharp rally.
MCX silver price for September futures contracts was down by Rs 995, or 0.40%, at Rs 2,45,602 per kg. It touched an intraday low of Rs 2,44,815 level, falling as much as 0.72% from previous close. Spot silver rate in the global markets steadied at $68.98 per ounce, consolidating just below the $70 mark after touching a high of $69.665.
In the past three sessions, MCX silver price rallied by Rs 14,178 per 10 grams, or 6.1%.
Silver futures consolidated within the Rs 2,42,000 – Rs 2,27,481 range from August 7 to August 19, and then broke out of this range on August 21, supported by decent follow-through buying and rising volumes.
“Silver is now trading above key moving averages, indicating an improvement in the overall trend. The decline in the DXY could be one of the factors supporting the recent rise in silver prices. Momentum indicators have also turned favourable, with the RSI crossing above the 60 mark, signalling renewed bullish momentum,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
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Additionally, the +DI has crossed above the -DI on the ADX indicator, indicating that bulls are gaining firm control over the trend, he added.
He believes Rs 2,42,000 level is likely to act as an immediate support and MCX silver price to extend its upmove as long as it sustains above this level.
Ponmudi R, CEO, Enrich Money noted that the recent rally in silver price was driven by the same weaker-dollar, debt-fear dynamics lifting gold, alongside its resilient industrial-demand base.
“Bias is cautiously weak, with price needing to reclaim and hold above Rs 2,48,000 to retest Rs 2,50,000, while a slip below Rs 2,44,000 risks a pullback toward Rs 2,40,000,” he said.
For MCX silver price, he believes immediate support is at Rs 2,45,000 - Rs 2,44,000, with next support at Rs 2,40,000 - Rs 2,38,500. Immediate resistance is at Rs 2,50,000 - Rs 2,51,000, and a break above targets next resistance at Rs 2,54,000 - Rs 2,55,000.
RSI at 64.44, still elevated, reflects strong underlying momentum even as today's session shows some weakness near highs, added Ponmudi R.
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