Silver Futures Plunge Amid Global Sell-Off; Prices Fall Rs 5,175 on Multi Commodity Exchange
Silver prices saw a notable decline on Monday, falling significantly as market participants reduced their speculative bets. Futures contracts for silver traded down Rs 5,175, closing at Rs 2,51,967 per kilogram.The sell-off was reflected across the Multi Commodity Exchange (MCE). Silver contracts for the May delivery plummeted by Rs 5,175, marking a 2.01 per cent drop. Trading occurred in a session recording a business turnover of 1,505 lots.
Driving Factors Behind Silver's Decline
Analysts observing the market attributed the steep decline primarily to a sharp sell-off by market participants. This reduction in active betting significantly weighed on the overall pricing structure for silver in the domestic market.The weakening sentiment was mirrored globally. In New York, silver was trading lower, showing a decline of 1.54 per cent. This international weakness saw the metal priced at USD 79.64 per ounce.
Snapshot of Domestic and Global Movement
The decline in the domestic spot price contrasts with the global trend of weakness. While the Multi Commodity Exchange saw a major pullback, the overall picture indicated broad caution among international investors.The volume of 1,505 lots traded highlighted active participation despite the downward trend. This action, combined with reduced betting, cemented the fall of silver contracts for the May delivery.
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