Current Trends in Silver Prices: Fluctuations and Influencing Factors
Overview of Silver Price Movements
Silver prices are experiencing notable volatility, influenced by both domestic and international factors that shape investor behavior. As of March 1, the price for 1 kilogram of silver was noted at Rs 2,92,928, with the cost per gram at Rs 293. In the derivatives market, silver futures on the Multi Commodity Exchange (MCX) closed at Rs 274,389 on Friday, reflecting a decrease of Rs 609 or 0.22 percent. However, data from Goodreturns indicated slightly elevated retail prices, with silver priced at Rs 295 per gram and Rs 2,95,000 per kilogram on Saturday, highlighting market discrepancies.
Reasons Behind the Recent Price Drop
The recent decline in silver prices can be primarily linked to profit-taking and weaker global trends. Following a period of high prices, many traders decided to secure their profits, resulting in a price correction. Additionally, fluctuations in the US dollar have significantly impacted the market; a stronger dollar tends to diminish the appeal of precious metals to global investors, thereby exerting downward pressure on prices. These elements have collectively contributed to short-term volatility in the bullion market.
City-Specific Silver Pricing
City-Wise Price Overview
| City | 10 gram | 100 gram | 1 Kg |
| Chennai | Rs 3,200 | Rs 32,000 | Rs 3,20,000 |
| Mumbai | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Delhi | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Kolkata | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Bangalore | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Hyderabad | Rs 3,200 | Rs 32,000 | Rs 3,20,000 |
| Kerala | Rs 3,200 | Rs 32,000 | Rs 3,20,000 |
| Pune | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Vadodara | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
| Ahmedabad | Rs 2,950 | Rs 29,500 | Rs 2,95,000 |
Impact of Global Events on Silver Prices
Global events play a significant role in determining the direction of silver prices. Factors such as political instability, economic fluctuations, and currency changes can greatly influence investor interest. In times of heightened global risk, silver often sees increased demand as a safe-haven asset. Conversely, positive economic indicators and a strengthening dollar can restrict price increases. This ongoing tug-of-war between various influences keeps silver prices fluctuating and responsive to international news.