Silver Price Predictions: After running away at the speed of rocket, now a big fall is being seen in the prices of silver, due to which the concern of investors has increased. On Multi Commodity Exchange of India i.e. MCX, silver has slipped to the level of around Rs 2.5 lakh per kg. Earlier, silver had touched a historic high of Rs 4.20 lakh per kg. Since that record high, prices have continued to fall due to continuous profit-booking and global pressure. At present it is trading in the range of Rs 2.30 lakh to Rs 2.70 lakh per kg.

Why are investors worried?

The biggest question in the minds of investors is whether silver prices will fall further or whether it can rise again. There are many big reasons behind the recent decline – America’s strong economic data. Strong economic signals from America have reduced the possibility that interest rates will be cut there soon. When expectations of rate cuts decrease, the dollar strengthens.

Due to the strengthening of the dollar, silver becomes expensive in the international market because its price is fixed in dollars. This affects global demand and puts pressure on prices. Tremendous profit booking: After touching the record high, big investors and traders started booking profits. When there is selling on a large scale, a sharp fall in prices is seen.

In the international market, Comex Silver (COMEX) fell sharply after reaching a record level of $121. This had a direct impact on the sentiment of the Indian market.

What could happen next?

Market experts believe that silver may remain under pressure in the short term, because the dollar is strong and global uncertainties remain. In the long term, industrial demand for silver (especially in solar and electronics sectors) is expected to remain strong, which may support prices.

However, the recent decline has been faster than average, which indicates that the market is currently going through an unstable period. This may be the time for investors to be cautious and move forward with a long-term strategy.

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Silver price crash: After Thursday, a huge fall in the price of silver in India was seen on Friday also. The price of silver in India fell by Rs 25 per gram to Rs 275 per gram. Similarly, on Thursday, the price of 1 kg silver fell by Rs 25,000 to Rs 2,75,000 per kg.

silver is slipping

There has been a big fall in the rate of silver on MCX (Multi Commodity Exchange) also. Silver futures (with March expiry) had fallen to an intraday low of Rs 2,39,000 per kg. Experts had already said that gold and silver prices are likely to remain unstable on Friday, February 6. Some experts believe that the fall in prices in the precious metals market may continue for some more time.

InCred Money said, “Gold and silver are seeing significant declines following price rallies. This period of consolidation is not unusual for precious metals, especially after a prolonged rally. In fact, such declines often help reset positions and improve the quality of the next trend.”

Silver price today in these cities

• In many cities like Chennai, Madurai, Vijayawada, Bhubaneswar, Visakhapatnam, Salem, today the price of 10 grams of silver is Rs 2,800, the price of 100 grams is Rs 28,000 and the price of 1 kg is Rs 2,80,000.
• Today in many different cities like Mumbai, Delhi, Kolkata, Bengaluru, Nagpur, Patna, Ayodhya, the price of 10 and 100 grams of silver is Rs 2,750 and Rs 27,500. At the same time, the price of 1 kg silver is Rs 2,75,000.

President Trump has signed a spending deal that restores funding for key federal agencies, effectively ending the partial shutdown of the US government. China’s gold ETFs saw record outflows in a single day, causing investor confidence to waver after a sharp fall in prices. Iran-US talks are scheduled to take place today, while after Chinese President Xi Jinping’s recent virtual meeting with Russia’s Vladimir Putin, President Trump held extensive discussions with China’s Xi Jinping ahead of his proposed April visit.

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Silver Price Crash: Today, Thursday, February 5, a big fall was seen in the prices of silver. As of 9:36 am Indian time on MCX (Multi Commodity Exchange), silver prices were at Rs 2,46,257 per kg, which is 8.4 percent less than the previous closing price. Before this big fall, the price of silver had opened at Rs 2,52,719.

Today the price of silver on Comex in the international market was $ 81 per ounce, which is 3.74 percent less than the previous closing. However, before the fall, silver also rose by about 25 percent. Similarly, today the price of silver has fallen by Rs 20,000 per kg in the retail market.

There was a rise in the price a day ago

There was a sharp rise in silver prices in India on Wednesday. Due to this, its price reached the level of Rs 320 per gram and Rs 3,20,000 per kilogram. In January, silver prices had crossed Rs 4 lakh, but later it declined rapidly.

After the rise on Wednesday, today the price of silver has fallen by Rs 20,000 per kg, due to which its price is now Rs 3,00,000. At the same time, silver is currently being sold at Rs 300 per gram. Along with this, in all the big cities like Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad, Jaipur, today the price of 1 gram silver is Rs 3000, the price of 100 grams silver is Rs 3000 and the price of 1 kg silver is Rs 3,00,000.

Why did the price fall?

Actually, the standoff between the US military and Iran in the Arabian Sea increased the safe-haven demand, but the market is currently waiting for the new round of nuclear talks to be held on Friday. Apart from this, the prices of silver and other precious metals are reacting negatively to the rise in the US dollar. The US dollar index is now trading near the 98 mark, whereas it had fallen to a four-year low in late January.

There is an inverse relationship between the dollar index and precious metals like gold and silver. When the dollar strengthens, their prices fall because the price of gold and silver is fixed in dollars. In such a situation, when the dollar strengthens, it becomes expensive for buyers using other currencies like rupee to buy gold and silver. Due to this, demand reduces at the global level and a fall in prices is seen.

Additionally, when the dollar is strong, investors prefer to invest in the dollar rather than non-interest bearing assets like silver. Silver is a non-interest asset because it does not generate any additional money, interest or dividends just by holding it.

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Silver Price Crash: The sudden sharp fall in the price of silver has created a stir in the bullion market. Silver, which gave 170 percent return to investors last year, made a shocking reversal on MCX. On Friday, the price of silver fell by 27 percent or Rs 1,07,968 in a single day. This is the second biggest fall in the price of silver so far. Due to this sudden huge decline in the price of silver, it has now gone far below the level of Rs 3 lakh.

Silver crashed from record high level

Interestingly, this silver bubble burst when its price had reached a record high of Rs 4 lakh just a day before the fall. On Friday, March expiry silver fell by Rs 1,07,968 or 27 per cent and closed at Rs 2,91,925 per kg on Multi Commodity Exchange (MCX). In the international market, spot silver fell by 28 percent to $ 85 per troy ounce. What happened that suddenly the price of silver fell so drastically?

strong US dollar

US President Donald Trump has elected Kevin Warsh as the new Chairman of the US Federal Reserve. With the entry of Trump’s favorite Warsh in the US Fed, the US dollar index climbed above the 97 mark. Generally, the strengthening of the dollar is negative for the prices of both gold and silver because their prices are fixed in US dollars worldwide. Due to strengthening of dollar, they become expensive for foreign buyers and their demand reduces. Higher interest rates reduce the appeal of non-interest yielding assets like silver.

pressure of rising gold price

Silver prices often follow the trend of gold. Gold prices had reached record levels at the beginning of the week. Due to global uncertainty, spot gold had reached close to $ 5600 an ounce. However, due to the fall in prices on Friday, it fell 4.7 percent to $ 5,143.40 an ounce. On MCX, February gold futures fell by 12 percent or Rs 20,514 and closed at Rs 1,50,440 per 10 grams.

Citi Research said that Kevin Warsh’s nomination supports that the Federal Reserve will remain independent. The bank called it a medium-term bearish factor for gold. This attitude also affected Silver’s emotions.

In fact, Warsh is being seen as a person who, despite agreeing with the policies of the Trump administration, also emphasizes on institutional independence. In such a situation, without being under political pressure, he can change his stance on the basis of data.

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