New Delhi, March 20 Silver prices rebounded sharply by Rs 8,540 to Rs 2.40 lakh per kilogram in futures trading on Friday, ending a seven-day losing streak due to increased buying activity following a significant decline in a recent session.
On the Multi Commodity Exchange, the silver for May delivery rose by Rs 8,540, or nearly 4 per cent, to Rs 2,40,000 per kg.
This recovery followed a sharp decline on Thursday, when the metal fell by Rs 16,734, or nearly 7 per cent, to close at Rs 2,31,460 per kg.
During intra-day trading in the previous session, prices had plummeted as much as 14 per cent, reaching a low of Rs 2,14,212 per kg.
Analysts said the rebound came as investors reassessed their positions after a sharp correction driven by surging oil prices, which spiked above USD 119 per barrel globally, fueling fears of persistent inflation and tighter monetary policy.
In international markets, silver futures for the May contract on the Comex gained USD 2.43, or 3.42 per cent, to trade at USD 73.65 per ounce, ending a seven-day losing streak.
Silver stabilized above USD 73 per ounce but remains on track for a third consecutive weekly loss, as surging energy prices from the conflict in West Asia fueled inflation concerns and reduced expectations for interest rate cuts by global central banks, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He added that rising energy costs and mounting inflationary pressures have prompted investors to shift towards the US dollar and Treasury bond yields, thereby reducing the appeal of the safe-haven asset.
Meanwhile, the European Central Bank (ECB), the Bank of Japan, and the Bank of England (BoE) have kept interest rates unchanged but signaled hawkish tones, indicating a bias towards tighter policy.
Investors have also pushed back expectations of monetary policy easing by the US Federal Reserve to 2027 and are pricing in two rate hikes each from the ECB and BOE this year, further dampening the appeal of precious metals, Trivedi said.