Silver Futures Tumble Over Rs 8,000 on Strong Dollar, Fed Rate Hike Concerns
White metal slides more than 3% on MCX amid weak global cues and pressure from rising US bond yields
By : PTI
Update: 2026-06-23 10:40 GMT
Silver futures retreated by Rs 8,158 to Rs 2.26 lakh per kg, tracking weak global trends amid a strong dollar and rising expectations of higher interest rates by the US Federal Reserve. On the Multi Commodity Exchange (MCX), the white metal for July delivery slumped by Rs 8,158, or 3.48 per cent, to Rs 2,26,152 per kilogram in a business turnover of 10,059 lots.
Similarly, the September contract also plunged by Rs 8,629, or 3.59 per cent, to Rs 2,31,509 per kg in 6,291 lots.
Analysts said bullion sentiment remained under pressure as traders reassessed the outlook for US monetary policy amid a rally in the dollar and elevated Treasury bond yields.
"Silver prices moved lower in the domestic markets, as a stronger US dollar and rising expectations of further interest rate hike by the Federal Reserve weighed on investor sentiment," Navneet Damani, Head of Research - Commodities at Motilal Oswal Financial Services Ltd, said.
The dollar index is closer to one-year high, following possibility of a Fed rate hike as early as September and elevated Treasury bond yields, he added.
The weakness in domestic markets mirrored a sharp-selloff in the overseas trade.
In the international markets, Comex silver futures for July delivery fell USD 3.57, or 5.45 per cent, to USD 62.01 per ounce in New York.
"Silver saw a sharper decline in the overseas trade, dropping to USD 62 per ounce level as uncertainty surrounding US-Iran peace talks weighed heavily on market sentiment," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Market participants also weighed developments in the global energy market after the US has granted Iran a 60-day license to sell oil, raising expectations of a quick recovery in crude supplies.
Traffic through the Strait of Hormuz has improved, while producers such as Kuwait and the United Arab Emirates have stepped up efforts to secure alternative routes.
Meanwhile, investors are awaiting fresh inflation signals from Washington.
"Traders will focus on the upcoming Personal Consumption Expenditures report, Fed's preferred inflation measure, which is expected to shed fresh light on underlying price pressures," Renisha Chainani, Head of Research at Augmont, said.