Silver Prices Plummet Amid Global Metals Market Correction
Silver prices plummeted by 2.36% to ₹232,419 as the metals market corrected globally. The decline was triggered by a surge in global bond yields reaching multi-year highs due to concerns over heavy government spending and persistent inflation. Despite this, silver retained some support from reduced expectations of a Federal Reserve rate hike following weak U.S. economic data.
The University of Michigan consumer sentiment index fell to 51 in early August from 55.2 in July, while U.S. retail sales declined 0.6% month-on-month in July against expectations for a 0.1% increase. Initial unemployment claims rose 9,000 to 209,000, exceeding expectations of 202,000.
Silver demand is supported by industrial fundamentals such as photovoltaic solar panels, electric vehicles, green-energy infrastructure, and artificial-intelligence data centers. Chinese imports of silver-bearing ores jumped 62.5% year-on-year to 219,000 tonnes in June, highlighting continued processing activity.