Silver prices in Chennai declined on Thursday, tracking a sharp correction in global markets after an exceptional rally. As of January 30, silver in Chennai is priced at Rs 4,150 for 10 grams, Rs 41,500 for 100 grams, and Rs 4,15,000 per kilogram, lower than the previous session as domestic prices adjusted to softer international cues.
Global silver cools after record run-up
International silver prices retreated about 4% toward the $110 per ounce level on Friday after briefly hovering near all-time highs earlier in the week. The pullback came as investors locked in profits following a near-parabolic rally. Despite today’s decline, silver remains up over 50% in January, marking its strongest monthly performance on record and extending gains for a ninth straight month.
Profit booking after extreme rally
Silver had surged aggressively across global and Indian markets, supported by safe-haven demand, tight supplies, and strong momentum buying. After such a steep rise, traders moved quickly to book profits, triggering selling pressure across futures and spot markets.
Dollar rebound adds pressure
A modest rebound in the US dollar also weighed on precious metals. A firmer dollar typically pressures commodities priced in dollars, making them more expensive for non-dollar buyers and encouraging short-term selling.
India premium unwinds
In recent sessions, MCX silver had been trading at a steep premium to global prices. As international prices cooled, this elevated domestic premium began to compress, leading to a sharper correction in Indian prices, including Chennai, compared with overseas markets.
Overall, the dip in Chennai silver prices reflects a combination of global profit booking, a firmer dollar, and the unwinding of domestic premiums after record highs. Rates may vary slightly across local jewellers due to taxes and dealer margins.
