Silver prices moved lower in India on Monday, August 24, after a strong rally in the previous few trading sessions. The decline came amid some weakness in international bullion markets and profit booking by traders following the recent sharp rise.

On the Multi Commodity Exchange (MCX), silver futures for September delivery fell by ₹995, or around 0.40%, to ₹2,45,602 per kilogram during the session. The contract also touched an intraday low of ₹2,44,815 per kg, about 0.72% below its previous closing level.

The latest movement comes after silver had witnessed a substantial rise over the preceding sessions, making Monday's correction important for buyers and investors tracking precious metal prices.

Silver Pulls Back After Strong Three-Session Rally

Silver had recorded strong gains in the previous three trading sessions on MCX. During that period, prices increased by around ₹14,178 per kilogram, representing a rise of approximately 6.1%.

Before the breakout, silver futures had largely moved within a range between ₹2,27,481 and ₹2,42,000 during August 7 to August 19.

The market eventually broke out of this range on August 21 as buying activity strengthened and trading volumes improved.

After such a steep rise within a short period, some traders appeared to book profits on Monday, leading to a decline in futures prices.

What Is Happening in the International Silver Market?

Silver remained close to elevated levels in global markets as well.

Spot silver was around $68.98 per ounce after earlier touching approximately $69.665 per ounce. This kept the precious metal just below the important $70-per-ounce level.

Movements in international silver prices can have a direct influence on domestic rates because Indian bullion markets are affected by global prices, the rupee-dollar exchange rate, investor sentiment and industrial demand.

Silver is different from gold in one important respect. Apart from being purchased as an investment and precious metal, it also has significant industrial applications. This means its price can react not only to safe-haven demand but also to expectations for global manufacturing and economic activity.

Silver Price Today in Major Indian Cities

Retail silver rates were around ₹2,450 per 10 grams and ₹2,45,000 per kilogram across most of the major cities covered in the latest market data.

Actual retail prices can differ slightly depending on the dealer, location, taxes and other charges. Buyers should therefore confirm the final quotation with a local jeweller before completing a purchase.

How Did Silver Perform in the Previous Session?

Silver had ended the previous week on a strong note.

On Friday, the September delivery contract on MCX gained ₹2,369, or about 0.97%, to reach approximately ₹2,45,612 per kilogram.

That increase was supported by strength in global precious metal markets and renewed buying interest.

Monday's decline therefore appears to be a pullback following a period of strong upward momentum rather than an isolated movement.

Dollar and US Bond Yields Remain Important

Global currency and bond markets are also being closely watched by bullion traders.

The US Dollar Index has remained near multi-month lows with only limited movement from its previous close. A weaker dollar can provide support to precious metals because commodities priced in the US currency become relatively cheaper for buyers using other currencies.

At the same time, long-term US bond yields have softened following developments in the Treasury market. Lower yields can sometimes increase the attractiveness of non-interest-bearing assets such as gold and silver.

However, silver prices may remain volatile because several international factors are influencing investor sentiment at the same time.

US Inflation Data Could Be the Next Big Trigger

Investors are now looking ahead to the US Personal Consumption Expenditures, or PCE, Price Index for July, scheduled for release on Wednesday, August 26.

The PCE inflation index is closely monitored because it is one of the key indicators used by the US Federal Reserve while assessing inflationary trends.

A higher-than-expected inflation reading could influence expectations regarding future interest-rate decisions. Similarly, softer inflation could strengthen expectations of a more supportive monetary policy stance.

Any major change in US interest-rate expectations can affect the dollar, bond yields and precious metal prices.

Geopolitical Tensions Also Remain in Focus

Developments involving the United States and Iran continue to influence global financial markets.

Uncertainty surrounding diplomatic talks and the possibility of additional sanctions have contributed to geopolitical risk. Such developments can increase demand for precious metals when investors become more cautious about riskier assets.

At the same time, geopolitical tensions can affect crude oil prices and broader inflation expectations, creating another indirect influence on gold and silver markets.

What Should Silver Buyers Watch Now?

Silver remains at historically elevated levels despite Monday's decline. Anyone planning to purchase jewellery, coins, bars or silver for investment should avoid focusing only on a single day's price movement.

The next major direction may depend on global silver prices, the US dollar, American inflation data, Federal Reserve commentary and geopolitical developments.

For retail buyers, it is also important to compare local rates because the final purchase price can differ from benchmark market quotations.

After a strong rally in recent sessions, Monday's fall shows that silver can remain highly volatile even when the broader trend appears strong. Buyers and investors should therefore evaluate their requirements, investment horizon and ability to handle price fluctuations before making a decision.

Disclaimer: This article is meant only for general information. Precious metal prices can fluctuate sharply and market-linked investments involve risk. Readers should consult a qualified financial adviser before taking any investment decision.