Silver Futures Slip to ₹2.48 Lakh Per Kg Ahead of Key US Fed Decision
Bullion market remains cautious with traders focusing on interest rate outlook and economic projections from the Federal Reserve
New Delhi, June 18: Silver futures extended their losses for a second consecutive session on Wednesday, reflecting cautious investor sentiment ahead of the US Federal Reserve’s highly anticipated monetary policy announcement. The precious metal witnessed selling pressure in domestic and international markets as traders preferred to stay on the sidelines until greater clarity emerges on the future direction of US interest rates.
On the Multi Commodity Exchange (MCX), silver contracts for July delivery dropped by ₹1,705, settling at ₹2,48,400 per kilogram. The decline represented nearly a one per cent fall during the trading session, with market participation remaining active as more than 11,000 lots changed hands.
Market experts attributed the weakness primarily to uncertainty surrounding the Federal Reserve’s policy stance. Although economists broadly expect the US central bank to leave benchmark interest rates unchanged, investors are closely monitoring the accompanying policy statement, economic forecasts and comments from policymakers for indications about future monetary easing or tightening.
The bullion segment has witnessed heightened volatility in recent sessions as traders balance multiple factors, including inflation concerns, geopolitical developments and changing expectations regarding global economic growth. With the Federal Reserve’s decision carrying significant implications for financial markets worldwide, many participants have refrained from taking aggressive positions.
In overseas trade, silver prices also remained under pressure. Comex silver futures in New York slipped below the psychologically important $70-per-ounce level and traded around $69.87 per ounce. The move reflected a broader trend of caution across commodity markets ahead of the central bank’s announcement.
Analysts noted that the precious metal’s recent rally has encouraged some profit-booking activity, while shifting investor focus toward interest rate expectations has limited fresh buying. Changes in monetary policy often influence demand for non-yielding assets such as gold and silver, making Federal Reserve decisions a key driver of bullion market trends.
According to commodity market observers, geopolitical developments and movements in crude oil prices have also contributed to fluctuating sentiment. While geopolitical tensions generally support safe-haven assets, improving risk appetite in certain segments of the market has reduced the immediate demand for defensive investments.
Research analysts said traders are now concentrating on the Federal Reserve’s updated economic projections, which are expected to provide insight into the central bank’s assessment of inflation, employment and economic growth. Any revisions to these forecasts could significantly impact precious metal prices in the coming weeks.
Market participants are also paying close attention to comments regarding future rate trajectories. Even if interest rates remain unchanged, signals about potential policy adjustments later in the year could influence investor behaviour across bullion, currency and bond markets.
Financial institutions tracking the sector believe the Federal Reserve meeting will serve as an important test for commodity markets. Investors are expected to carefully evaluate the central bank’s guidance to determine whether borrowing costs could begin moving lower in the coming months.
Analysts added that changes in US Treasury yields and the strength of the dollar following the policy announcement could have a direct impact on silver prices. A stronger dollar generally makes precious metals more expensive for overseas buyers, while lower bond yields can improve the attractiveness of bullion investments.
As the market awaits the outcome of the Federal Reserve’s deliberations, traders are expected to maintain a cautious approach. The direction of silver prices in the near term will likely depend on how investors interpret the central bank’s economic outlook and future policy signals.
For now, the white metal remains under pressure, with global and domestic markets watching closely for fresh cues that could determine the next major move in bullion trading.
