MCX silver rate today: Silver prices are currently moving in a narrow range after witnessing a sharp correction from the peak hit towards the end of January. The strong rally in the white metal that began last year came to an abrupt halt as investors resorted to profit-booking, citing overstretched valuations following the steep run-up.
Silver prices in the domestic spot market had surged 168% last year, driven by a supply squeeze, rising industrial demand from sectors such as solar and electronics, and sensitivity to a weaker US dollar.
The rally spilt over into this year, with MCX silver prices climbing past the ₹4,20,000 mark. However, the upmove proved short-lived. The turning point came after Donald Trump nominated inflation hawk Kevin Warsh as the next US Federal Reserve Chair, a move that boosted the greenback and dampened appetite for precious metals. With prices already stretched after a rapid ascent, the development triggered heavy profit-booking. In just three sessions — from January 30 to February 2 — silver prices nearly halved.
From its peak, MCX silver is now down about ₹1,59,000, or 40%, inflicting steep losses on investors who entered near the highs. While prices are attempting to stage a recovery, analysts caution that the recent bounce may face resistance unless supported by strong technical signals. On MCX today, February 11, silver prices have risen by 3%
Manav Modi, Commodities Analyst, Motilal Oswal Financial Services, said the bounce cannot yet be termed a confirmed reversal. “After such an extended rally to ₹4,20,000, silver needed time correction along with price correction. Bollinger Band contraction suggests volatility compression — typically preceding a larger directional move. However, sustained trade above the mid-band with improving volumes would reduce “dead cat” probability,” he said.
Silver prices: Technical outlook
The current level coincides with prior breakout support and the lower band of the daily Bollinger Bands.
The recent rebound has pushed prices back toward the mid-band (20-SMA), but it has yet to decisively reclaim it. Structurally, the chart is forming a broad immediate rectangle between ₹2,25,000 and ₹2,85,000 after the vertical fall,” said Modi. He believes that unless silver prices close above ₹2,85,000– ₹3,00,000 (upper Bollinger band expansion zone), the move remains a pullback within consolidation. He sees immediate support is ₹2,25,000, and in case of a fall below that, ₹2,00,000 becomes vulnerable. “Near term, range-bound with a cautious bias. Long term, the higher-timeframe structure still favours a buy-on-dips approach as long as ₹2,00,000 holds.”
Ponmudi R, CEO of Enrich Money, also believes that the MCX Silver’s short-term momentum is under pressure. “The ₹2,25,000– ₹2,60,000 support band remains crucial. Sustained stability above ₹2,66,000, followed by strong follow-through, could push prices toward ₹2,75,000– ₹2,80,000.”
He believes any fall towards the support may offer positional accumulation opportunities, but cautioned that a decisive break below support could accelerate downside extension.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.