Mumbai: Silver prices fell around 2 percent on February 10 as the U.S. dollar strengthened and investors turned cautious before key U.S. economic data. Recent reports also show silver and gold have been volatile, with profit booking and global market uncertainty keeping prices under pressure.
Silver has been highly volatile in recent weeks. Data shows Indian silver prices dropped sharply from late-January highs above Rs 4 lakh per kg to nearly Rs 3 lakh levels in early February, showing a clear downward trend after the rally peak.
Globally too, silver and gold prices have been reacting to currency moves and economic expectations. Analysts note that stronger dollar phases usually push precious metals lower because they become more expensive for global buyers.
Why silver prices are falling?
Stronger U.S. dollar: When the dollar rises, gold and silver usually fall. This is because metals are priced in dollars globally, making them costlier for other countries.
Interest rate expectations: Markets expect possible U.S. rate cuts later in 2026. Lower rates support metals, but uncertainty before data releases creates short-term pressure.
Profit booking after rally: After record highs in January, many investors booked profits, which triggered a sharp correction across precious metals.
What to watch next?
U.S. economic data: Markets are closely tracking U.S. jobs and inflation data. These numbers will decide future interest rate direction and metal demand.
Federal Reserve policy signals: If rate cuts become certain, gold and silver could see fresh buying interest.
Volatility likely to stay: Experts say silver may remain more volatile than gold because of speculative trading and industrial demand swings.
What lies ahead?
Short term: Prices may stay volatile due to global data and currency moves.
Medium term: If rate cuts happen, metals could recover.
Long term: Safe-haven demand and industrial use may support prices.
