Silver prices rebounded sharply by ₹8,540 to ₹2.40 lakh per kilogram in futures trade on Friday, snapping a seven-day losing streak on value buying after a steep decline in a recent session.
On the Multi Commodity Exchange, the white metal for May delivery appreciated by ₹8,540, or nearly 4 per cent, to ₹2,40,000 per kg.
The recovery follows a sharp decline on Thursday, when the metal had plunged by ₹16,734, or nearly 7 per cent, to close at ₹2,31,460 per kg.
During intra-day trade in the previous session, prices had plummeted as much as 14 per cent to hit a low of ₹2,14,212 per kg.
Analysts said the rebound came as investors reassessed their positions after a sharp correction driven by surging oil prices, which spiked above $119 per barrel globally, stoking fears of persistent inflation and tighter monetary policy.
In the international markets, silver futures for the May contract on the Comex gained $2.43, or 3.42 per cent, to trade at $73.65 per ounce, halting a seven-day losing streak.
Silver stabilised above $73 per ounce but remains on track for a third consecutive weekly loss, as surging energy prices from the conflict in West Asia fuelled inflation concerns and reduced expectations for interest rate cuts by the global central banks, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
He added that rising energy costs and mounting inflationary pressures have prompted investors to shift towards the US dollar and Treasury bond yields, thereby reducing the appeal of the safe-haven asset.
Meanwhile, the European Central Bank (ECB), the Bank of Japan, and the Bank of England (BoE) have kept interest rates unchanged but signalled hawkish tones, indicating a bias towards tighter policy.
Investors have also pushed back expectations of monetary policy easing by the US Federal Reserve to 2027 and are pricing in two rate hikes each from the ECB and BOE this year, further dampening precious metals’ appeal, Trivedi said.