NEW DELHI, May 4: Silver prices plunged Rs 3,917 to Rs 2.47 lakh per kilogram in futures trade on Monday as elevated crude oil rates amid inflation concerns dampened investors sentiment.
On the Multi Commodity Exchange (MCX), the white metal for July delivery decreased by Rs 3,917, or 1.56 per cent, to Rs 2,47,020 per kg in a business turnover of 7,234 lots.
Last week, silver gained Rs 879 to settle at Rs 2.50 lakh per kg on the MCX. In the overseas market, Comex silver futures for the July contract slipped USD 1.57, or 2.06 per cent, to USD 74.85 per ounce in New York.
Silver faced a week defined by the hawkish Fed-oil-inflation feedback loop suppressing rate-cut expectations, partially offset by yen-driven dollar weakness, Renisha Chainani, Head of Research at Augmont, said.
Physical demand and central bank buying remain structurally supportive, but near-term direction will depend on developments around the Strait of Hormuz, US payroll data due on May 8 and the trajectory of Treasury bond yields under incoming Federal Reserve Chair Kevin Warsh, she added.
Chainani noted that jewellery demand fell to a record low in the first quarter due to affordability pressures, while bar and coin investment offered partial support with resilient retail interest.
On the industrial front, strong earnings from global technology firms such as Meta, Alphabet, Microsoft, and Amazon highlighted robust investments in artificial intelligence, supporting long-term demand for silver in electronics and data infrastructure.
According to Chainani, silver is expected to trade in the range of USD 71-80 per ounce in international trade, equivalent to Rs 2.35-2.55 lakh per kilogram in the domestic markets. (PTI)
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