Silver Slumps Below ₹2.28 Lakh Amid Global Precious Metal Sell-Off
Silver prices plummeted on the Multi Commodity Exchange (MCX) on Monday, dropping over Rs 7,000 and slipping below Rs 2.28 lakh per kg amid a global sell-off in precious metals.
The sharp decline comes as rising crude oil prices have heightened inflation concerns globally, leading market expectations that the US Federal Reserve may keep interest rates higher for longer or consider further policy tightening.
Rising interest rates and elevated US Treasury yields typically reduce the appeal of precious metals, which do not offer interest income, while a stronger dollar makes commodities priced in the US currency more expensive for overseas buyers.
The December silver futures contract on MCX was trading at Rs 2,27,494 per kg, down Rs 7,202 or 3.07% from its previous close of Rs 2,34,696 per kg.