Silver Rate Sees Sharp Fall as Prices Slide in Bullion Market
Silver prices have dropped sharply within weeks shocking investors as global cues profit booking and dollar strength triggered correction while experts assess whether further downside risks remain limited
- Silver prices dropped sharply within nineteen days.
- Experts see limited downside from current levels.
- Industrial demand continues to support silver outlook.
Silver prices in the bullion market have witnessed a steep correction creating concern among investors and buyers alike. In just nineteen days the price of silver per kilogram has fallen by nearly one lakh fifty thousand rupees marking one of the sharpest short term declines in recent times.
After touching an all time high of around four lakh ten thousand rupees per kilogram towards the end of last month silver prices slipped below two lakh sixty thousand rupees. Market analysts say the sudden drop has been driven by a combination of global and domestic factors rather than a collapse in demand.
Experts point to the United States Federal Reserve maintaining a wait and watch approach on interest rate cuts and the strengthening of the dollar index as major reasons for pressure on silver prices. Higher margins on silver futures trading at international exchanges also forced traders to exit positions accelerating the fall. Profit booking by investors after the recent peak added to the decline.
Despite the sharp correction analysts believe further downside may be limited. Research reports suggest strong support around two lakh forty five thousand rupees per kilogram. A deeper fall of another fifty thousand rupees is considered unlikely unless global conditions worsen significantly or interest rates rise unexpectedly.
Industry demand for silver remains firm especially from solar panel and electric vehicle manufacturing sectors. Analysts describe the current fall as a price correction and advise long term buyers to view it as an opportunity while short term investors may wait for stability.
