NEW DELHI, Sep 10: Silver prices edged lower in futures trading on Thursday as traders reduced their positions, putting mild pressure on the precious metal despite a firmer trend in international markets.
On the Multi Commodity Exchange (MCX), silver contracts for December delivery fell Rs 568, or 0.23 per cent, to Rs 2,43,645 per kg. The contract recorded a business turnover of 1,262 lots.
Market participants attributed the decline mainly to selling pressure and a reduction in outstanding bets by traders. The move reflects a cautious approach among investors amid ongoing volatility in global commodity markets.
Interestingly, silver was trading around 0.50 per cent higher at $67.63 per ounce in the international market, indicating a mixed trend between domestic futures and global prices.
The domestic silver market has remained highly sensitive to global developments, currency movements, interest-rate expectations and investor sentiment. Precious metals have also been closely watched as markets assess the direction of US monetary policy and developments in the global economy.
For traders and businesses dealing in silver, short-term price movements can influence buying costs, inventories and margins. Jewellers, manufacturers and industrial users may continue to monitor international prices and currency movements before making fresh purchases.
The latest decline remains relatively modest and comes after significant volatility in silver prices in recent weeks. Investors are likely to remain cautious as global economic and geopolitical developments continue to influence precious-metal demand.
Going ahead, market participants will closely track global silver prices, the US dollar, interest-rate expectations and geopolitical developments for further direction. The combination of investment demand and silver’s industrial use is expected to remain important for the metal’s medium-term price outlook.