Silver Prices Tumble Amidst Crude Oil Spike and Inflation Fears

Silver prices experienced a sharp decline, falling by Rs 3,917 to Rs 2.47 lakh per kilogram on Monday, influenced by rising crude oil prices and inflation concerns. The decline was reflected on the Multi Commodity Exchange, where the white metal for July delivery saw a 1.56% decrease in price.

Renisha Chainani, Head of Research at Augmont, noted the impact of global factors, including the Federal Reserve's stance and yen-driven dollar weakness, on silver's performance. Despite these pressures, structural support remains from physical demand and central bank purchasing, though jewellery demand hit a record low.

Industrial demand is buoyed by significant investments in technology sectors. Firms like Meta, Alphabet, and Amazon drive long-term demand for silver in electronics. Chainani forecasts silver trading between USD 71-80 per ounce internationally, aligning with domestic prices of Rs 2.35-2.55 lakh per kilogram.

(With inputs from agencies.)