Silver Prices Plummet Rs7,000 on MCX Amid Global Sell-Off

Silver prices on the Multi Commodity Exchange (MCX) plummeted by over Rs7,000 to below Rs2.28 lakh per kg on Monday due to a global sell-off in precious metals.

The steep fall is attributed to rising crude oil prices and inflation concerns globally, which have strengthened market expectations that the US Federal Reserve may keep interest rates higher for longer or consider further policy tightening.

Higher interest rates and elevated US Treasury yields typically reduce the appeal of precious metals as they do not offer interest income. A stronger dollar also makes commodities priced in US currency more expensive for overseas buyers.

During noon trade, the December silver futures contract on MCX was trading at Rs 2,27,494 per kg, down Rs 7,202 or 3.07 percent from its previous close of Rs 2,34,696 per kg.