Silver prices corrected in Friday’s session, January 16, after a sharp rally in the previous trading day, as profit booking and weak global cues weighed on sentiment.
On the Multi Commodity Exchange (MCX), silver prices fell nearly 2% or around Rs 4,000 per kg in early trade. MCX silver opened with a downside gap at Rs 2,87,127 per kg and slipped to an intraday low of Rs 2,85,513 per kg within minutes of the opening bell. This comes a day after MCX silver touched a fresh all-time high of Rs 2,92,960 per kg.
Dollar strength triggers selling pressure
The primary trigger for today’s decline was a stronger US dollar, which climbed to a six-week high following better-than-expected US jobless claims data. The dollar index rose around 0.24% to 99.31, briefly touching 99.49, making dollar-denominated commodities like silver less attractive for investors.
According to market participants, the strengthening greenback has prompted short-term traders to book profits after silver’s steep rally over the past week.
Global silver prices retreat after record highs
In international markets, spot silver slipped about 0.8% to $91.68 per ounce, after hitting a record high of $93.57 earlier in the session. The metal had rallied aggressively in recent days on fears of potential US import tariffs on critical minerals, including silver. However, sentiment cooled after US President Donald Trump refrained from imposing immediate tariffs, easing supply-chain concerns for now.
Safe-haven demand eases
Another factor pressuring prices was a temporary easing of geopolitical tensions, particularly after signals of reduced escalation risks in the Middle East. This has led to some moderation in safe-haven demand for precious metals like silver and gold.
“ The major reason for the fall in gold and silver rates today is the US dollar gaining strength against major global currencies, driven by strong US unemployment data. Ease in US-Iran tensions has also reduced safe-haven demand,” said Anuj Gupta, a SEBI-registered commodity expert.
Weekly trend remains strong
Despite today’s dip, silver remains up nearly 15% for the week, reflecting sustained investor interest amid macro uncertainty, concerns over central bank independence, and tight supply dynamics. Analysts note that the current decline appears to be a healthy correction after yesterday’s all-time high, rather than a trend reversal.
Market participants are now watching global cues, US dollar movement, and fresh macro data for further direction in silver prices.
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