Silver Prices Plummet as US Federal Reserve Signals Higher Interest Rates

Silver futures have dropped for a second consecutive day on concerns that the US Federal Reserve's interest rate policy will remain high. The metal lost Rs 1,743 to Rs 2.37 lakh per kilogram on Tuesday, with MCX silver futures depreciating by nearly 1% and Comex futures also seeing a 1% drop.

The decline is attributed to expectations of the Fed maintaining higher interest rates for longer, which has weighed down sentiment in the market. Market participants are now focused on comments from US Federal Reserve officials for clues on future policy direction.

Renisha Chainani, Chief Research Officer at Augmont, said that MCX silver futures are struggling to find fresh momentum due to growing expectations of higher interest rates. She also noted that little US economic data is due this week, leaving market participants to watch Fed officials closely for hints on whether an October rate hike is on the table.