The silver futures market in India witnessed a tepid trading session on Thursday, with prices closing on a subdued note. This lacklustre performance followed a firm start to the New Year, as the precious metal failed to maintain its initial momentum and slipped into negative territory amid thin trading volumes.
Market Performance and Key Levels
On the Multi Commodity Exchange (MCX), the key March silver futures contract saw a marginal decline. It settled at ₹73, or 0.03%, lower at ₹235,800 per kilogram. This closing price marks a significant retreat from the all-time high of ₹2,54,174 per kg recorded on December 29. From that peak, silver prices have now corrected by almost ₹19,000.
Traders attributed the range-bound movement to a truncated trading schedule, as the domestic market was open only for the day session with the MCX evening session closed. Furthermore, a lack of directional cues from international markets, which were shut, kept price action confined to a tight band. Activity is expected to pick up as global markets reopen on Friday.
International Influence and Expert Outlook
The international market dynamics set a volatile backdrop. On Wednesday, silver futures on the COMEX plummeted sharply by $7.33, or 9.37%, to settle at $70.89 per ounce. However, a potential shift is on the horizon for Friday. Early morning trading showed the COMEX silver price trading significantly higher (in the green) and sustaining above the crucial support level of around $70 per ounce. This development could strengthen bullish convictions in the domestic market today.
Providing insight into the road ahead for MCX silver rates, Ponmudi R, CEO at Enrich Money, offered a balanced perspective. He acknowledged near-term pressure but emphasized that the longer-term bullish framework remains intact.
He pointed out that prices are finding initial support near the rising channel and the 20-day Exponential Moving Average (EMA) around ₹2,08,994. He added that deeper declines are likely to continue attracting accumulation interest from investors. According to his analysis, a sustained rebound above the ₹2,36,000 level could potentially trigger a fresh upward move towards ₹2,45,000 to ₹2,60,000 over the medium term. The broader strategy, therefore, continues to favour accumulation on price dips.
What to Watch Next
The immediate focus for traders will be on how domestic prices react to the positive momentum in early COMEX trading on Friday. The reopening of international markets is likely to inject volatility and provide clearer direction. Market participants will also monitor trading volumes, which were thin on Thursday, for signs of returning conviction. The broader trend, as per experts, suggests that strategic buying during corrections could be the prevailing theme for silver in the foreseeable future.
