Silver Prices Plunge to Lowest Futures Levels in India
Silver Futures Drop Significantly
New Delhi, March 23 – Silver prices experienced a sharp decline in futures trading on Monday, reaching their lowest levels in recent history. The price fell by Rs 20,409 to Rs 2.06 lakh per kilogram.Market Reaction
On the Multi Commodity Exchange, silver for May delivery plummeted by Rs 20,409, or 9 per cent, to Rs 2,06,363 per kilogram, hitting its lower circuit limit.Analyst Insights
Analysts attributed the significant drop to a combination of factors. Hareesh V, Head of Commodity Research at Geojit Investments Ltd, noted that escalating tensions in West Asia were overshadowed by broader macroeconomic pressures. “Profit-taking and liquidity needs have also triggered selling after metals’ earlier rally, with investors cashing out to cover losses elsewhere,” he stated.He further explained that a strong US dollar and rising Treasury bond yields were contributing to the decline, increasing holding costs and making dollar-denominated metals more expensive for global buyers. “Meanwhile, surging oil prices have intensified inflation fears, prompting expectations of delayed interest rate cuts, further putting pressure on assets such as silver,” Hareesh added.
International Market Impact
In the international market, silver futures on the Comex for the May contract declined by USD 6.51, 9.34 per cent, to USD 63.15 per ounce.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.