Silver Futures Lose Shine for 2nd Day; Falls Rs 1,743 to Rs 2.37 Lakh/Kg

New Delhi: Silver futures extended their slide for a second straight session, losing Rs 1,743 to Rs 2.37 lakh per kilogram on Tuesday as expectations of the US Federal Reserve keeping its policy rate higher for longer weighed on the metal.

On the Multi Commodity Exchange (MCX), the white metal futures for December delivery depreciated by Rs 1,743, or nearly 1 per cent, to Rs 2,37,574 per kg.

“MCX silver futures are struggling to find fresh momentum, with sentiment weighed down by growing expectations that interest rates will stay higher for longer,” said Renisha Chainani, Chief Research Officer at Augmont.

Silver also weakened in overseas markets, with Comex futures for the December contract falling 1 per cent to USD 65.75 per ounce in New York.

The focus now shifts to the US Federal Reserve officials, whose comments could offer fresh clues on the central bank’s policy direction, Chainani said.

The Federal Reserve raised its policy rate by 25 basis points last week and signalled that further increases could come in the months ahead.

“With little US economic data due this week, market participants will be watching Fed officials closely for hints on whether an October rate hike is on the table, alongside movement in crude oil prices,” she said.

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