New Delhi, Sep 28: Silver prices came under pressure on Monday, with the precious metal falling sharply in domestic futures trading as rising crude oil prices, a stronger US dollar and higher bond yields increased concerns over inflation and interest rates.
On the Multi Commodity Exchange (MCX), silver futures declined by around Rs 6,661 per kg to Rs 2,28,035 per kg during early trade. The fall came amid a broader decline in precious metals in global markets.
In the international market, silver slipped below $62.50 an ounce. Higher oil prices have raised concerns that inflation could remain elevated, strengthening expectations that the US Federal Reserve may keep interest rates higher for longer.
A stronger US dollar and rising US Treasury yields have also added pressure on silver. Since silver does not generate interest income, higher interest rates can reduce its attractiveness compared with interest-bearing assets.
Market participants are expected to closely watch crude oil prices, movements in the dollar and US bond yields, along with upcoming US economic data and geopolitical developments. These factors could continue to influence silver prices in the near term.
Despite the sharp correction, silver continues to attract demand from both investment and industrial users. The recent fall highlights the volatility in precious metals markets, where global interest-rate expectations, currency movements and economic uncertainty can quickly affect prices.