New Delhi, Mar 19: Silver futures witnessed a steep fall on Thursday, dropping by ₹9,031 to ₹2.39 lakh per kilogram, marking the seventh consecutive session of losses. Weak investor sentiment, driven by rising crude oil prices and a cautious stance from the US Federal Reserve, continued to pressure the white metal.
On the Multi Commodity Exchange, silver contracts for May delivery declined by 3.64 per cent to ₹2,39,163 per kilogram, with a trading volume of 6,372 lots.
Global Trends and Market Pressure
In international markets, silver futures on the Comex also extended losses, falling by USD 4.89, or 6.31 per cent, to USD 72.69 per ounce. The metal had already seen a sharp drop in the previous session, hovering near USD 75 per ounce.
Market analysts attribute the downturn to persistent inflation concerns linked to rising crude oil prices, which have reduced expectations of near-term interest rate cuts by the US Federal Reserve. A stronger US dollar has further dampened demand for safe-haven assets like silver.
Geopolitical Tensions Add to Uncertainty
The rally in crude oil prices, with Brent futures crossing USD 110 per barrel, has been fueled by escalating tensions in West Asia. Recent missile strikes targeting key energy infrastructure have heightened concerns over supply disruptions and global inflation risks.
Experts believe the combination of geopolitical uncertainty, elevated energy costs, and a cautious monetary policy outlook could keep silver prices under pressure in the near term.