Silver price falls Rs 5200 on MCX, gold at Rs 1.57 lakh; analysts advise staying away | Check city-wise rate

Silver, Gold Prices Today: Gold and silver futures fell on the MCX on Tuesday (Feb 10) ahead of key US macroeconomic data. On MCX, Gold futures for April 2 delivery traded over Rs 1,000 lower or 0.64 per cent at Rs 1,57,050 per 10 grams around noon. Around the same time, Silver futures for March 5 declined 2 per cent to trade at Rs 2,57,404 per kg on MCX. From previous day's close, Silver price has declined more than Rs 5,200.

Ajay Kedia said that traders and investors are cautious as Silver price crashed from Rs 4.20 lakh to Rs 2.25 lakh in just 10 days and now hovers around Rs 2.60 lakh.

"This is an uneven move in silver and such volatility was not seen before. So both traders and investors are cautious. However, nothing has changed fundamentally. The fall was largely driven by liquidation of high positions in the derivative markets. This uncertainty could continue for now in silver until the prices stabilise," he said.

"USD 70 is a crucial level in silver to watch. If silver falls below USD 70, we can see more selling. USD 70 to 90 is a broader range in which silver could move for now," he said and suggested aggressive buying or selling.

Silver Price: Ajay Kedia Recommendation

BUY: Rs 2.65 lakh CALL at Rs 15,400

Bhavik Patel of TradeBulls Securities said that volatility has increased in silver and suggested not to make fresh positions. He said that it is yet to be confirmed that both silver and gold have formed a bottom.

"Holding above USD 85-90 will be very crucial for silver to continue to uptrend. My suggestion will be to avoid silver for now from trading perspective and wait for volatility to cool down. If you want to invest in silver, ETF will be a good option," he said.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)