Silver prices on MCX are surging close to 4% today, largely tracking strength in global markets and supportive macro cues.
Globally, silver rebounded to around $74 per ounce after two consecutive sessions of decline. The move is being attributed to dip-buying interest and fresh positioning ahead of the U.S. Federal Reserve’s January meeting minutes. When global prices recover sharply, MCX silver typically mirrors the momentum due to currency and international pricing linkages.
Another key driver is the rate-cut narrative. Markets continue to price in multiple interest rate cuts later this year. Lower interest rates are generally supportive for non-yielding assets like silver, as the opportunity cost of holding precious metals declines.
While recent commentary suggests the Fed may keep rates on hold for some time, traders are factoring in the possibility of easing later in the year if inflation trends toward the 2% target. This has helped revive bullish sentiment in precious metals.
Investors are also closely watching upcoming U.S. GDP and core PCE data for further clarity on policy direction.
Additionally, earlier dollar strength and easing geopolitical tensions had weighed on prices, but with Asian markets reopening after Lunar New Year holidays, fresh liquidity and buying interest have amplified the upside move on MCX today.