Silver Prices Drop Nearly 2% to Rs 2.4 Lakh per Kg on MCX Amid Weak Global Cues

MCX Silver Futures Slide on Subdued Domestic Demand​

Silver prices declined sharply in futures trade on Monday, falling nearly 2 per cent to hover around Rs 2.4 lakh per kilogram, weighed down by weak global trends and muted demand in domestic spot markets.

On the Multi Commodity Exchange, silver contracts for March delivery slipped by Rs 3,630, or 1.49 per cent, to trade at Rs 2,40,730 per kilogram. The decline was recorded in a business turnover of 5,803 lots, reflecting cautious participation from traders.

The drop in MCX silver mirrors softness in overseas markets, where global cues remained negative through the session.

Comex Silver Futures Trade Lower in Thin Holiday Volumes​

In international markets, COMEX silver futures for the March contract were trading 1.45 per cent lower at USD 76.83 per ounce in New York.

Silver fell more than 1 per cent to USD 76 per ounce, reversing gains from the previous session. Trading volumes remained thin due to market holidays in the United States, China, and several other countries, which kept broader participation subdued.

On Friday, the white metal had surged nearly 3 per cent after softer US inflation data strengthened expectations that the Federal Reserve could begin cutting interest rates later this year.

Rate Cut Expectations in Focus as Key US Data Awaited​

Market participants are currently factoring in a potential rate cut in July, with a strong probability of a move in June. Investors are now awaiting the release of the Federal Reserve’s latest meeting minutes and the core Personal Consumption Expenditures price index report for clearer signals on the monetary policy trajectory.

These developments are expected to shape near-term sentiment in precious metals, including silver.

China Holidays, Speculative Rally and Sharp Correction​

Meanwhile, markets in mainland China remained closed this week for the Lunar New Year holidays, contributing to lower global trading activity.

Chinese traders had driven a speculative rally in precious metals in recent weeks, prompting authorities to implement measures aimed at curbing market risks.

Silver had peaked above USD 120 per ounce in late January before witnessing a sharp correction to around USD 64 earlier this month as sentiment reversed. The recent pullback in prices reflects the fragile mood prevailing in global bullion markets.

With weak global cues and cautious sentiment dominating, MCX silver prices may face further downside pressure, with levels around Rs 2.35 lakh per kilogram being closely watched by market participants.