By Admin 
Silver Price Today: After reaching historic highs in recent weeks, there is a sharp decline in silver prices. During trading on Monday, silver on MCX fell by about 6 percent or about Rs 17,000. On February 2, the price of silver on MCX fell to Rs 2,48,799 per kg. Earlier, MCX Silver Futures had touched the level of Rs 4 lakh to Rs 4.20 lakh per kg, but now the prices have slipped back to the range of Rs 2.50 lakh to Rs 2.60 lakh per kg.
Why the big fall in silver?
Regarding this big fall in silver, Enrich Money CEO Ponmudi R. Says that this is part of natural consolidation after a sharp rise. According to him, Comex Silver is currently trading in the important consolidation zone of $75 to $85, whereas earlier it had reached a record level above $121.6. He said that silver still remains in a broadly bullish trend, but due to the recent sharp rise, the prices had gone into the overbought zone, which led to aggressive profit-booking and a sharp fall. Ponmudi R. It also said that prices still remain above key moving averages, which indicates that the current decline is not the end of the trend, but a healthy pause.
Talking about the future scenario, Pranab Mer, Vice President, EBG – Commodity and Currency Research, JM Financial Services Limited, said that such a fall in prices is natural after excessive rally and the same situation has been seen in the bullion market. According to him, amid the heavy selling in the domestic market on Sunday, gold has fallen by about 20 percent from its all-time high, while silver has slipped by about 37 percent from its highest level. Global futures markets remained closed on Sunday due to holidays, but on Friday, the future prices of gold and silver in the international markets saw a sharper decline than in the domestic markets.
What will happen next?
The gold futures contract for April delivery in Comex had set a new record of $ 5,626.8 an ounce on Thursday, but after that it fell by $ 612 or 11.39 percent and closed at $ 4,763.10 an ounce. On the other hand, silver for March delivery, after reaching an all-time high of $ 121.78 an ounce on Thursday, fell by $ 35.89 or 31.37 percent to close at $ 78.53 an ounce on Friday.
According to market analysts, the US dollar strengthened after Federal Reserve Chairman Jerome Powell indicated that interest rate cuts were unlikely in the near future, which put pressure on gold and silver prices. Apart from this, the announcement by US President Donald Trump to nominate former Federal Governor Kevin Wersh as the next Fed Chairman also affected the market sentiment. Pranab Mer says that in the coming few trading sessions, further technical improvement i.e. decline may be seen in the bullion market, although after this there is a possibility of some stability and slight recovery in the prices.
Also read: The market recovered from the big shock on the budget day, Sensex closed after jumping 944 points, why is the market in excitement?
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)