The Multi Commodity Exchange (MCX) recorded a downward trend in precious metal prices during the early trading session on Tuesday, while this correction follows a significant surge in the bullion market on Monday. 42%. According to market analysts, this movement reflects a technical correction after the substantial gains recorded in the previous session.
MCX Morning Session Details
During the early hours of Tuesday, silver prices for February 27 delivery on the MCX fell by ₹4120 per kilogram, reaching a trading price of ₹2,66,250.52% decrease from the previous close. 42%. Analysts suggest that the cooling off in prices is partly due to global market cues and a slight strengthening of the US dollar index, which often puts pressure on dollar-denominated commodities.
Intraday Price Range and Volatility
The first half-hour of trading on Tuesday showcased notable volatility. Silver touched an intraday low of ₹2,65,126 per kilogram and an intraday high of ₹2,68,498 per kilogram. For context, silver had closed at ₹2,70,370 per kilogram on Monday. Gold also experienced fluctuations, reaching an intraday low of ₹1,56,001 per 10 grams and a high of ₹1,58,070 per 10 grams. Monday’s closing price for gold stood at ₹1,58,066 per 10 grams. Such intraday movements are typical in the commodity markets as traders react to real-time data and global price shifts.
Comparison with Bullion Market Performance
The decline on the MCX follows a historic surge in the Delhi bullion market on Monday. 66%, or ₹17,000, to reach ₹2,72,000 per kilogram, up from Friday’s close of ₹2,55,000.83%, settling at ₹1,58,500 per 10 grams compared to Friday’s ₹1,57,200. The sharp contrast between Monday's physical market gains and Tuesday's futures market decline highlights the dynamic nature of precious metal pricing.
Attribution-Based Market Analysis
According to market analysts, the current dip in prices is a standard market reaction following a period of rapid appreciation, while experts note that after a nearly 7% jump in silver prices in a single day, profit-booking is expected among short-term traders. Also, analysts point out that domestic prices are heavily influenced by international spot prices and the USD-INR exchange rate. The current trend is being monitored closely in the context of global economic indicators and central bank policies regarding interest rates.