Market Performance: Silver Rate Today Under Pressure
Silver rate today saw a sharp fall on the Multi Commodity Exchange (MCX), extending losses for the third straight session. The correction has been swift and heavy.
On Monday, February 2, MCX silver price slipped 4%, hitting an intraday low of ₹2,55,652. With this move, silver is now down over 39% from its recent record high of ₹4,20,000, which was reached just last Thursday, January 30.
The speed of the fall tells its own story. What was a strong rally only days ago has now turned into a phase of intense price swings, driven by macro triggers rather than local demand-supply factors.
At the same time, gold also struggled. MCX gold price dropped 1.5%, touching a day’s low of ₹1,40,000, marking its sharpest recent correction in years.
Main News: Global Signals Pull Silver Rate Today in Different Directions
While MCX prices remained under pressure, global markets showed a sharp intraday rebound.
Spot silver, after tumbling nearly 12% in early trade, bounced back strongly. Prices jumped over 8% to $84.140. This sudden recovery highlights just how volatile the current phase is.
Gold followed a similar path overseas. After sliding 4% during early Asian hours, spot gold recovered by nearly 1%, even as domestic prices stayed weak.
The divergence between global recovery and MCX weakness suggests that domestic factors and currency strength are playing a bigger role in shaping silver rate today.
The Story Behind the Fall in Silver Rate Today
The last few weeks had pushed precious metals to levels few expected so quickly. January saw aggressive buying as investors chased safety amid:
- Geopolitical tensions
- Currency weakness
- Questions around the Federal Reserve’s policy independence
- Strong speculative participation, including buying interest from China
That momentum, however, broke suddenly.
The spark came from US politics. News that President Donald Trump is likely to name Kevin Warsh as the next Federal Reserve Chair unsettled markets and reshaped expectations almost instantly, setting off a rapid shift in sentiment across assets.
Warsh is seen as firm on inflation. That perception strengthened the US dollar, which typically weighs on dollar-priced assets like gold and silver. As the dollar firmed up, bullion prices started losing steam.
Margin Hikes Add to the Pressure
Another major reason silver rate today remains under stress is tighter trading conditions.
The CME Group announced higher margin requirements on Comex futures after witnessing some of the largest price swings in decades. These changes came into effect from February 2.
Revised margin requirements include:
- Gold futures
- Non-heightened risk accounts: 8%, up from 6%
- Heightened risk accounts: 8.8%, up from 6.6%
- Silver futures
- Non-heightened risk accounts: 15%, up from 11%
- Heightened risk accounts: 16.5%, up from 12.1%
Margins for platinum and palladium were also increased.
Higher margins mean traders need to block more capital, often leading to position cuts. That creates forced selling pressure, which has clearly reflected in silver rate today.
Why Silver Rate Today Looks More Unstable Than Gold?
Silver has always been the more volatile cousin of gold. When prices rise, silver rallies harder. When sentiment turns, the fall is usually sharper.
The current phase shows that clearly:
- A 39% fall from peak in just days
- Intraday moves of 8–12% globally
- Sharp divergence between MCX and international prices
This isn’t a smooth trend. It’s a market adjusting to new information, tighter liquidity, and shifting global expectations.
Company Details: What This Means for the Broader Commodities Space?
From a market structure point of view, the recent action in silver rate today reflects stress across the precious metals segment rather than an isolated move.
Gold, silver, platinum, and palladium have all felt the impact of:
- Sudden dollar strength
- Policy-linked uncertainty
- Higher trading costs due to margin hikes
Such phases often see sharp daily moves without a clear directional bias, keeping volatility elevated.
Summary: Where Silver Rate Today Stands?
Silver rate today remains under pressure on MCX, even as global prices attempt a recovery. The metal is nearly 40% below its record high, shaken by a stronger dollar and tighter margin norms.
Gold has also corrected, though with relatively lower volatility.
What stands out most is the pace of change. Just days after record highs, precious metals are navigating one of their most turbulent phases in recent memory. Prices are reacting less to fundamentals and more to policy signals, currency movements, and liquidity shifts.
For now, silver rate today reflects a market trying to regain balance after an extreme run-up—and an equally sharp correction.
Source: Livemint
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