Silver prices slumped by ₹16,352 to ₹2.74 lakh per kilogram in futures trade on Friday, tracking a sharp fall in global markets amid mounting US inflation concerns and renewed expectations of interest rate hikes by the Federal Reserve.
On the Multi Commodity Exchange, the white metal for July delivery plummeted by ₹16,352, or 5.62 per cent, to ₹2,74,750 per kilogram in a business turnover of 7,908 lots.
Analysts said a stronger dollar, rising US Treasury bond yields and broad-based weakness across the precious metals complex weighed on silver prices.
In the global markets, Comex silver futures for the July contract declined by ₹6.42, or 7.52 per cent, to ₹78.90 per ounce in New York.
“Silver slipped below ₹82 per ounce in the overseas trade, extending declines for a second consecutive session as broad-based weakness across the metals segment deepened amid mounting US inflation concerns and renewed rate hike speculation,” Renisha Chainani, Head – Research at Augmont, said.
Analysts said market participants also remained cautious amid elevated geopolitical concerns in West Asia and uncertainty surrounding the US-Iran negotiations.
Higher crude oil prices and persistent inflation concerns have reduced expectations of near-term rate cuts by the US Federal Reserve, putting additional pressure on precious metals, they added.
After the conclusion of the Summit, US President Donald Trump said his talks with Chinese President Xi Jinping in Beijing were “incredible” and that both sides had discussed Iran and the Strait of Hormuz.
“We did discuss Iran. We feel very similar about how we want it to end. We don’t want them to have a nuclear weapon. We want the Strait open,” Trump said.