Silver Prices Crash By Rs 4,900 To Rs 90,900/Kg

New Delhi: Silver prices tumbled to a three-week low by losing Rs4,900 to Rs90,900 per kg, while gold slipped Rs100 to Rs78,700 per 10 grams in the national capital on Thursday on frantic selling by stockists and retailers, according to the All India Sarafa Association. Silver also dropped Rs4,900 to trade at Rs90,900 per kg, marking a steepest fall on poor offtake by jewellers and coin makers. Earlier, the white metal had slumped Rs4,600 on November 4. On Wednesday, silver saw its steepest single-day jump of Rs5,200 and regained the Rs95,000 per kg level after a gap of two-weeks in the national capital.

Traders said the sentiment was downbeat largely in sync with a firm trend overseas amid uncertainty over the implications of US President-elect Donald Trump’s tariff plans on economic prospects and the Federal Reserve’s (Fed) interest rate outlook. Meanwhile, in futures trade on the Multi Commodity Exchange (MCX), gold contracts for December delivery rose Rs167, or 0.22 per cent, to trade at Rs75,927 per 10 grams on Thursday. “Gold prices exhibited significant volatility, starting on a weaker note but quickly finding support amid renewed geopolitical tensions between Russia and Ukraine, which continue to bolster safe-haven buying. “Dollar index movements and geopolitical updates will likely keep gold’s momentum uncertain in the short term,” Jateen Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities, said. However, silver futures contracts for December delivery fell Rs115, or 0.13 per cent, to Rs87,565 per kg.

Meanwhile, Comex silver futures slipped 0.15 per cent to $30.51 per ounce in the international markets.

Silver prices on declined Rs 656 to Rs 87,024 per kilogram as participants reduced their bets. On the Multi Commodity Exchange, silver contracts for December delivery declined Rs 656 or 0.75 per cent to Rs 87,024 per kg in a business turnover of 9,771 lots. Analysts said a sell-off by participants at existing levels in the market mainly weighed on silver prices. Globally, silver was trading 0.72 per cent lower at USD 29.88 per ounce in New York.

“The yellow metal on Thursday is slightly up and is highly volatile on a firmer US dollar and geopolitical jitters emanating from the nuclear threat a a fallout of the ongoing Russia-Ukraine war,” Praveen Singh, Associate V-P (fundamental currencies and commodities) at Mirae Asset Sharekhan. According to Saumil Gandhi, Senior Analyst of Commodities, HDFC Securities, traders believe gold prices are likely to consolidate in range, and trading volume is expected to remain thin due to the Thanksgiving holiday in the US.

In the Asian market hours, Comex gold futures advanced $8.20 per ounce, or 0.31 per cent, to $2,673 per ounce. “Gold prices continue to trade steady in a narrow range, amidst mixed data from the US, volatility in dollar index, increased trade tariff threat and fluctuations in market expectations regarding rate cuts,” Manav Modi, Analyst, Commodity Research at Motilal Oswal Financial Services Ltd, said. However, continuous updates regarding the ceasefire deal between Israel and Hezbollah and mixed comments from Fed officials are limiting gains and keeping market participants on the edge, Modi said. Meanwhile, Comex silver futures slipped 0.15 per cent to $30.51 per ounce in the international markets.