Silver dips to Rs 2.68 lakh/kg as dollar gains

Metro India News | HYDERABAD

Silver prices fell by Rs 3,400 to Rs 2.68 lakh per kilogram on Monday, continuing losses for the third consecutive day in the national capital. The decline was driven by a strong US dollar and volatile global markets, which dampened demand for the white metal.

According to the All India Sarafa Association, silver dropped nearly 1.3 per cent from Friday’s closing of Rs 2,71,700 per kg. Analysts said rising crude oil prices have stoked concerns over renewed inflationary pressures. Saumil Gandhi, Senior Analyst at HDFC Securities, noted that higher energy prices could delay interest rate cuts by the US Federal Reserve, supporting the dollar and Treasury yields, which in turn weighed on silver.

Globally, silver was trading 0.53 per cent lower at USD 83.92 per ounce. Kaynat Chainwala, AVP Commodity Research at Kotak Securities, added that forced liquidations to meet margin calls during recent market sell-offs further pressured silver prices.

Investors are now watching upcoming US economic indicators such as CPI, Core PCE Price Index, preliminary GDP, and job openings for cues on the Fed’s policy path. Geopolitical tensions in West Asia are also expected to influence market sentiment.

The continued decline in silver highlights its vulnerability to global inflation concerns, currency strength, and commodity market volatility.