Silver Futures Extend Losses for Second Day Ahead of Fed Meeting

New Delhi: Silver futures declined for the second straight day on Wednesday, falling by Rs 1,705 to Rs 2.48 lakh per kg, tracking weak global trends as investors await the outcome of the US Federal Reserve’s policy meeting.

On the Multi Commodity Exchange, the white metal for July delivery depreciated by Rs 1,705, or nearly 1 per cent, to Rs 2,48,400 per kilogram in a business turnover of 11,162 lots.

Analysts said investors are largely stayed on the sidelines amid uncertainty over the Federal Reserve’s policy outlook, limiting fresh buying in the white metal.

In the international markets, Comex silver futures slipped below the key USD 70 per ounce mark and were trading marginally lower at USD 69.87 per ounce in New York.

Silver prices fell on Wednesday driven by a combination of geopolitical tensions and technical buying as investors look beyond safe-haven assets amid fluctuating oil prices, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

Market participants are closely tracking the outcome of the Federal Reserve’s meeting, where interest rates are widely expected to remain unchanged.

“The US central bank is widely expected to keep rates unchanged, but its updated economic projections and policy guidance will be closely watched for clues on the future rate path,” Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said.

According to financial services company ING Think, the meeting will also mark a key test for bullion markets as investors assess comments from new Federal Reserve Chair Kevin Warsh regarding the future direction of monetary policy.

Analysts noted that traders will also parse the Fed’s updated economic forecasts and remarks on inflation and growth, which could influence the bullion prices, US Treasury bond yields and the dollar in the near-term.

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