New Delhi, April 7 The price of silver plummeted by Rs 1,479 to Rs 2.31 lakh per kilogram in futures trading on Tuesday, amid escalating geopolitical tensions in West Asia and rising inflation concerns that dampened investor sentiment.
On the Multi Commodity Exchange, the white metal for May delivery decreased by Rs 1,479, or 0.63 per cent, to Rs 2,31,900 per kg in a trading volume of 5,873 lots.
Analysts said that silver remained under pressure as traders were closely monitoring geopolitical developments in West Asia and their potential impact on global growth and monetary policy.
In global markets, silver futures on the Comex for the May contract fell by nearly 1 per cent to USD 72.41 per ounce in New York.
Silver remained near USD 73 per ounce as investors focused on US President Donald Trump's threat to target Iranian civilian infrastructure unless his demands are met, raising concerns about the economic impact of a prolonged conflict, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Trump warned that he could "strike Iranian power plants and bridges" if his conditions are not met by Tuesday, including the reopening of the Strait of Hormuz.
Silver has remained under pressure since the conflict began, declining more than 20 per cent, as surging energy prices fuelled inflation fears and increased the likelihood that central banks may delay interest rate cuts or even consider raising them, Trivedi said.
Markets now expect the US Federal Reserve to keep interest rates unchanged for the remainder of the year, compared with earlier projections of two rate cuts, he added.
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