Bullion markets witnessed a noticeable turnaround as silver prices rebounded from the intense selling pressure recorded earlier in the week. After experiencing a steep weekly plunge of Rs 42,000, physical retail counters, domestic commodity exchanges, and overseas trading desks all reflected strong upward price momentum.
Domestic Retail Rates Climb Across Indian Metros
On Saturday, February 21, retail silver in India was trading at Rs 2,75,000 per kilogram, logging a single-day gain of Rs 5,000. Smaller retail quantities also saw upward revisions, with 100 grams of silver advancing by Rs 500 to stand at Rs 27,500. The steady uptick provided stability to the domestic bullion trade following days of heavy price degradation.
Metropolitan trading centers mirrored this broader recovery with sharp revisions. In Hyderabad, silver recorded a dramatic single-day jump, climbing by Rs 20,000 per kilogram to settle at Rs 2,90,000 per kilogram. Meanwhile, mirroring trends visible in Chennai, Bangalore, and Hyderabad, the market in Mumbai registered an increase of Rs 5,000, which lifted local prices to Rs 2,75,000 per kilogram.
Futures Action and Analyst Projections on MCX
On the Multi Commodity Exchange, silver futures contracts experienced aggressive buying interest throughout the trading session. MCX silver futures jumped 4.4 percent to trade at Rs 2,52,040 per kilogram, reversing a significant portion of recent losses in a single swift advance.
Analyzing the contract movements, the ICICI Commodity Report outlined that MCX Silver March was projected to trade within a range between Rs 238,000 and Rs 248,500. The report emphasized that only a decisive breakout above the Rs 248,500 threshold would pave the way for a rise toward Rs 252,000, an upside target that the market ultimately tested during the session.
Market participants also tracked strategic levels outlined in a report from Nirmal Bang Securities, which projected further upside in the white metal. According to the advisory, traders could initiate long positions at Rs 237,000 with a strict stop loss set at Rs 230,000, aiming for a target band between Rs 245,000 and Rs 252,000. For contrarian or short positions, the note suggested selling from Rs 260,000 with a protective stop loss placed at Rs 268,000.
Global Spot Performance and US Macro Signals
Overseas bullion desks mirrored the domestic recovery, with international spot silver demonstrating strong upward momentum. The metal rose nearly 5 percent during the week prior to closing, with spot silver concluding the trading session hovering near $82 per ounce.
According to Trading Economics, this global recovery gained traction as traders evaluated conflicting economic indicators coming out of the United States. While fourth-quarter GDP arrived softer at 1.4 percent, core PCE inflation proved sticky at 3 percent, creating a complicated backdrop for the Federal Reserve regarding its monetary policy trajectory. Adding to the prevailing market volatility, the minutes from the latest FOMC meeting revealed clear divisions among central bank policymakers regarding future interest rate choices.
