Silver slides nearly 4% to Rs 2,56,343 on MCX amid strong dollar, profit-booking

Silver price today

• Silver dropped 4% on MCX, reflecting global market declines and profit-taking.
• US Fed holds rates; Kevin Warsh nomination boosts the dollar
• Geopolitical tensions and steady demand keep silver prices stable despite correction.

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Silver opened the February 2 session lower at Rs 2,56,243 per kilogram on MCX, trading almost 4 percent down from the previous close, mirroring the fall in the international market as a firmer dollar and profit-booking unloads the metal's prices, trading at record peaks just a few days ago.

At 3:45 am (GMT), the white metal was trading at $78.815 an ounce, up 0.36 per cent from the previous close on Comex.

Silver prices saw a sharp correction after the US Federal Reserve held interest rates steady at 3.5–3.75 percent in its January policy meeting. The US President Donald Trump has nominated Kevin Warsh as the next chair of the US Federal Reserve, set to take over when Jerome Powell’s four-year term ends in May.

Silver rates across India’s major cities showed remarkable uniformity, with only marginal differences due to local taxes, jeweller margins, and logistics costs.

Here's how a kilogram of silver has moved

Analysts say that Warsh’s hawkish stance and his appointment as Fed chair have lifted the dollar, while Trump’s comments on a potential Iran deal have eased geopolitical worries, pressuring WTI crude.

Despite the pullback, prices remain supported by heightened geopolitical tensions, including strained US-Iran relations over the nuclear issue, the Russia-Ukraine war, the Gaza crisis, Trump's tariff threats, a firm dollar, and steady industrial demand.