New Delhi, March 13 The price of silver plunged by Rs 5,354 to Rs 2.62 lakh per kilogram in futures trading on Friday, as rising crude oil prices and persistent inflationary concerns weighed on investor sentiment.
On the Multi Commodity Exchange, the white metal for May delivery fell by Rs 5,354, or 2 per cent, to Rs 2,62,608 per kilogram in a trading volume of 5,900 lots.
Analysts said that silver prices came under pressure due to a strong US dollar and volatility in the global commodities market.
"Silver prices declined as rising crude oil prices and strong inflation concerns in the US overshadowed its appeal as a safe haven," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
He added that the high inflationary risks have dampened hopes for interest rate cuts by the US Federal Reserve.
In the international market, silver futures on the Comex for the May contract slipped by USD 2.21, or nearly 3 per cent, to USD 82.89 per ounce.
Silver was trading around USD 85 per ounce after a two-day slide, but remained on track to end the week largely unchanged as the dollar strengthened amid uncertainties in the Middle East and surging oil prices, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Meanwhile, defiant rhetoric from leaders in Tehran and Washington indicated that the Iran war remains far from de-escalation after nearly two weeks of fighting, keeping investors cautious.
"Investors are now awaiting the January Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, for updated insights on price trends, though it will not reflect the impact of the Iran war," Trivedi added.