Silver prices on the Multi Commodity Exchange (MCX) opened sharply higher on February 18, rising over 2% in early trade as investors positioned themselves ahead of the U.S. Federal Reserve’s January meeting minutes.
The MCX continuous silver contract was trading at Rs 2,33,355 per kg, up Rs 4,572 or 2.00% as of 09:07 AM.
The rally in domestic prices mirrored global trends, with spot silver hovering near $74 per ounce after snapping a two-session losing streak. Market participants are closely watching the release of the Fed minutes for insights into the central bank’s stance on interest rates and inflation.
Fed cues driving sentiment
Markets continue to factor in the possibility of multiple rate cuts later this year, which typically supports non-yielding assets such as silver. While recent commentary has indicated that rates may remain steady in the near term, traders are assessing whether policymakers see scope for easing if inflation trends toward the 2% target.
Upcoming U.S. economic data, including GDP and core PCE inflation readings, are also expected to influence the policy outlook.
Dollar movement and global backdrop
Earlier dollar strength and easing geopolitical tensions had dampened safe-haven demand, contributing to recent declines in silver. However, subdued volumes due to Lunar New Year holidays across parts of Asia limited volatility, allowing prices to recover.
The over 2% opening gain on MCX reflects renewed buying interest and positioning ahead of key global macro cues.