Silver price today rallies 1.24% on MCX despite stronger dollar; What should investors watch out for?

• Silver rose 1.13 percent to $78.51 per ounce on global cues
• MCX silver futures closed flat at Rs 2,41,400 per kilogram
• Fed meeting minutes awaited to guide precious metals' direction

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Silver prices surged marginally on February 20 amid easing geopolitical tensions and a stronger dollar. The spot metal price opened the Friday session higher at Rs 2,44,390 per kilogram, representing 1.24 percent gain from the previous week.

Silver price was trading 1.13 percent higher at $78.51 per ounce on Comex, supported by geopolitical developments, a stronger dollar, and signals on the US Federal Reserve’s rate outlook amid industrial demand.

Markets await the minutes of the Fed's January meeting for clearer signals on the future trajectory of interest rates, which may determine the next direction for precious metals.

Here's how a kilogram of silver has moved.

Silver prices up — what lies ahead?

The Augmont Bullion report, published on February 19, noted that geopolitical tensions have shown signs of stabilising, reducing the urgency for defensive precious metals allocations. As a result, some investors chose to book profits after the recent rally.

At the same time, the US dollar strengthened, emerging as the dominant factor influencing price action. While January’s softer inflation data supported expectations of multiple rate cuts this year, strong nonfarm payroll numbers, steady private hiring, and continued economic growth have reduced the likelihood of an aggressive or immediate easing cycle. This shift in expectations has supported the dollar and created headwinds for gold and silver.

Geopolitical developments — including renewed US–Iran nuclear talks and ongoing Russia–Ukraine negotiations — continue to underpin gold’s safe-haven appeal. However, in the current phase, currency movements have had a stronger impact than geopolitical factors.

Markets are now awaiting the minutes of the Federal Reserve’s January meeting for clearer signals on the future interest rate path, which will likely guide the next move in precious metals.

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