Silver futures plunge 4% on MCX ahead of US CPI; rising oil adds pressure

Silver prices plunged on Wednesday, October 14, as rising crude oil prices and caution ahead of key US inflation data weighed on sentiment. Investors awaited the US Consumer Price Index (CPI) report for clues about the Federal Reserve’s next interest-rate decision.

On the Multi Commodity Exchange (MCX), December silver futures traded 3.68% lower at Rs 2,11,143 per kg at the last check. The contract touched an intraday low of Rs 2,10,817 per kg, compared with its previous close of Rs 2,19,217.

Kaveri More, commodity technical analyst at Choice Broking, said MCX silver had breached its crucial support zone of Rs 2,17,600–Rs 2,12,600, potentially intensifying the ongoing bearish pressure.


“The broader outlook remains cautious, with the stronger dollar and continued weakness relative to gold likely to influence near-term sentiment,” More said.

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Silver spot prices extended losses

In the international market, spot silver was quoted at $56.97 per ounce, down 4.16%, according to Reuters.

Ponmudi R, CEO of Enrich Money, said silver continued to underperform gold and remained the weaker asset in the precious-metals complex. Renewed expectations of further interest-rate hikes outweighed support from industrial demand, although underlying demand helped limit deeper losses, he said.

He added that the near-term outlook remained cautious, with a sustained move above $59.50 needed to stabilise prices. A decisive break below $59 could trigger a further decline towards the $57–$57.50 range.

Rising crude oil prices added to market caution

Meanwhile, crude oil prices continued to trade higher, adding to investor caution amid renewed concerns about potential supply disruptions.

Brent crude was up 0.11% at $105.81 per barrel at the last check, while West Texas Intermediate crude traded 1.34% higher at $95.40 per barrel.

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