Silver rebounds 1.85% to Rs 2,33,024 on February 18; what lies ahead?

• Silver prices fell to $72 before recovering to near $74 per ounce
• Decline driven by easing geopolitical risks and strong US dollar
• Silver expected to consolidate between $70 and $90 per ounce

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The silver futures opened the February 18 session at Rs 2,33,024 per kilogram, representing 1.85 percent gain from the previous close. Prices had slipped amid global cues, selling pressure, and increased volatility.

On the international market, the metal's price had dropped sharply during the early trade on Wednesday, touching a low of $72, but shed some losses to trade just above $74 per ounce (3:34 am GMT) on Comex, which is a gain of 1.04 percent from the previous close.

Meanwhile, the Indian Bullion and Jewellers Association pegged the standard price of 1 kilogram of silver at Rs 2,32,955 per kilogram on its 18:30 session on February 17, which is a 3.32 percent decline from Rs 2,40,947 in the last 24 hours.

Here's how a kilogram of silver has moved

Silver prices decline — why silver is falling and what lies ahead?

According to Ross Maxwell, Global Strategy Operations Lead, VT Markets, markets are increasingly pricing future monetary easing across major economies, and any clear indication towards rate cuts would lower real yields and weaken the opportunity cost of holding non-yielding assets like gold and silver. Ongoing geopolitical tensions, elevated sovereign debt levels, and continued central bank diversification into bullion support ongoing demand.

"There are some short-term hurdles that investors should be aware of. A prolonged period of higher-for-longer interest rates, a sustained dollar rally, or resilient economic data that delays easing could limit prices and keep gold range-bound," said Maxwell.

Precious metals prices declined on Tuesday as safe-haven demand eased amid improving geopolitical developments and a stronger U.S. dollar. The US President Donald Trump indicated indirect involvement in upcoming US–Iran nuclear discussions in Geneva, raising hopes of diplomatic progress. At the same time, fresh Ukraine–Russia talks reduced immediate geopolitical tensions.

"As risk sentiment improved, some investors reduced defensive positions in precious metals. Markets are now focused on the minutes of the Federal Reserve’s January meeting, which are expected to provide guidance on the interest rate outlook. Current expectations suggest the first rate cut could come in June, keeping monetary policy supportive in the medium term," stated the Augmont Bullion report, published on February 17.

It added that the recent decline appears to be a short-term correction driven by easing geopolitical risks and currency strength, rather than a shift in the broader supportive outlook for precious metals.

The report further predicts that silver will trade weak and consolidate in the $70–$90 range (Rs 2,25,000–Rs 2,85,000). "Traders should follow a buy-on-dips, sell-on-rallies strategy. A breakdown below $70 may trigger further downside toward $64 (Rs 2,00,000)."