Silver Price Plunges ₹2500 in India Amid Easing US Monetary Policy Expectations
Silver prices in India have dropped by ₹2500 per kg, following a sharp decline of ₹6000 on Thursday. The Multi Commodity Exchange (MCX) saw a 1% fall to ₹2,33,100 per kg in early trade today.
The price drop comes after a rally and widespread selling in precious metals. Investors are making profits due to expectations of easing US monetary policy, which has led to a rise in bullion prices.
According to the All India Bullion Association, silver imports fell 66.1% year-on-year to $171.68 million in July. Imports during April-July decreased by 50.81% to $718.42 million due to the government's increased import duties on precious metals from 6% to 15%.
The near-term direction of silver prices will depend on the balance between profit-taking, US interest rate expectations, and industrial demand outlook. Volatility is likely to remain high as prices are still at elevated levels.