Silver Prices Plummet as Fed Rate Concerns Weigh on Market

Silver futures continued their downward trend for the second consecutive session on Tuesday, falling ₹1,743 to ₹2.37 lakh per kilogram due to concerns over the US Federal Reserve's policy rate.

The December delivery of MCX silver futures depreciated by nearly 1% to ₹2,37,574 per kg, as sentiment was weighed down by growing expectations that interest rates will remain higher for longer.

According to Renisha Chainani, Chief Research Officer at Augmont, 'MCX silver futures are struggling to find fresh momentum' due to the prevailing market conditions.

The Federal Reserve's recent decision to raise its policy rate by 25 basis points and signal further increases in the coming months has contributed to the decline in silver prices.