Silver price surges on MCX
Silver prices witnessed a sharp rally on Friday, January 9, with MCX silver futures hitting the 4% upper circuit amid strong global cues. The continuous silver contract on the Multi Commodity Exchange of India was trading at ₹2,53,056 per kg, up ₹9,732 or 4%, as of 8:41 PM IST.
The sharp upside move came after two sessions of heavy selling, with prices rebounding strongly as global macroeconomic signals turned supportive for precious metals.
Weak US jobs data drives global silver prices
In the international market, silver prices rose over 1.5% to above $78.2 per ounce on Friday. The rally followed weaker-than-expected US labour market data, which strengthened expectations of Federal Reserve rate cuts.
US non-farm payrolls for December increased by just 50,000 jobs, significantly below market expectations, while the unemployment rate declined to 4.4%. The data reinforced the view of a low-hiring, low-firing labour market, supporting the case for monetary easing rather than tighter policy.
Lower real yields boost precious metals demand
The softer US jobs data led to a decline in real yields, easing pressure on precious metals. This shift encouraged fresh long positions and short covering in silver futures, especially after index-driven selling linked to annual commodity rebalancing began to fade.
Market participants noted that reduced selling pressure, combined with improving rate-cut expectations, triggered a sharp rebound in silver prices.
Additional global cues support silver rally
Apart from macroeconomic factors, geopolitical risks in regions such as Venezuela and East Asia provided additional support to silver prices. However, the primary driver of the rally remained the repricing of US interest rate expectations.
Thin liquidity conditions further amplified the upside move, accelerating gains after the recent sharp liquidation phase.
Silver outlook amid volatile global markets
The strong move in silver highlights renewed sensitivity of precious metals to US economic data and interest rate expectations. With global markets closely tracking upcoming macro indicators, volatility in silver prices is expected to remain elevated in the near term.
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