Silver Price Shows Highest Daily Drop In 2 Months, Falls By Rs. 3900 Today: Buy?

Similar to the gold prices, Indian silver prices are also stressed before Diwali this year. Today, on October 18, the silver price has shown the highest daily drop in the last two months in India. The silver price fell by Rs. 3900/kg in the domestic markets and was quoted at Rs. 56,600/kg. Yesterday, the silver price was quoted at Rs. 60500/kg.

In mid-August, the silver price was also down sharply, after the interest rate hike by the US Federal Reserve. Indian silver prices are fixed following international market trends. Today, in India, the Mumbai Commodity Exchange (MCX) silver in December future is quoted at Rs. 56632/10 grams, up by 0.58%, from the last trading day.

Before Diwali, it is good news for Indian retail buyers; they can obtain silver at low prices, for good long-term returns. As a precious metal, silver has given a good return in the long run, similar to gold.

Additionally, today, on October 17, in India the 22-carat gold rate is quoted at Rs. 46,420, and the 24-carat gold rate is quoted at Rs. 50,640/10 grams, falling by Rs. 40. Meanwhile, the US 2-year Treasury bond yield quoted to around 4.446%, and the US 10-year Treasury yield quoted to around 4.002%. Today, the US Dollar index is quoted at 112.10, at the time of writing.

Importantly, today, the Comex silver futures were quoted at $18.76/oz, up marginally by 0.22%, till last traded. Commenting on the international silver markets, analyst Jim Wyckoff told Kitco News, "The silver bears have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $20.00. The next downside price objective for the bears is closing prices below solid support at the September low of $17.40. First resistance is seen at $19.00 and then at $19.29. Next support is seen at today's low of $18.155 and then at $18.00."