Silver prices in Chennai remained under sharp pressure on Friday, January 31, tracking the steep correction seen across global and domestic bullion markets. The precious metal witnessed one of its most volatile sessions in recent decades, reflecting heavy selling after an extraordinary rally over the past few months.
As per the latest available data, the silver rate in Chennai today stands at Rs 3,500 per 10 grams, Rs 35,000 per 100 grams, and Rs 3,50,000 per kilogram. These levels come after a sharp single-day decline, mirroring weakness in international prices and domestic futures.
The sharp fall in Chennai silver prices follows an intense selloff in futures markets. On the domestic futures exchange, silver March 5 contracts slumped to Rs 2,91,922 per kg, down Rs 1,07,971 or nearly 27% in a single session. At the same time, gold February 5 futures settled sharply lower at Rs 1,49,075 per 10 grams, declining by Rs 20,328 or about 12%.
In the international market, the pressure intensified as COMEX gold prices fell by $591 to close at $4,763 per ounce, while COMEX silver slid by nearly $36, dropping below the $79 per ounce mark. The sharp move in global markets quickly spilled over into domestic pricing, impacting bullion rates across major Indian cities, including Chennai.
Market participants attributed the crash to a violent correction after an extraordinary rally, as gold and silver had surged aggressively in recent months, pushing technical indicators into extreme overbought territory. The sudden shift in sentiment triggered heavy profit booking and forced unwinding of speculative positions, leading to heightened volatility in bullion prices.
Silver prices in Chennai continue to be influenced by global spot prices, currency movements, import duties, and local demand, with traders expecting volatility to remain elevated in the near term.
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