New Delhi, February 17 Silver prices fell by more than 2 per cent to Rs 2.33 lakh per kilogram on Tuesday, tracking weak global trends and low liquidity amid market holidays across major Asian economies.
On the Multi Commodity Exchange, the white metal for March delivery plunged by Rs 6,330, or 2.64 per cent, to Rs 2,33,561 per kilogram in a business turnover of 5,820 lots.
In the international markets, Comex silver futures fell by USD 3.56, or 4.58 per cent, to USD 74.39 per ounce.
"Silver dropped over 2 per cent to below USD 76 per ounce as liquidity remained subdued amid market holidays in China, Hong Kong, and other parts of Asia," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He said Chinese traders had driven a speculative surge in precious metals in January before the dramatic reversal, prompting authorities to curb market risks through various measures.
Silver had surged to a record above USD 120 per ounce in late January, but later tumbled to around USD 64 earlier this month as leveraged positions were unwound and investors liquidated holdings to cover losses elsewhere.
With US markets back open, attention now shifts to the Federal Reserve's meeting minutes and the core Personal Consumption Expenditures (PCE) price index for cues on monetary policy. Markets are currently pricing in a possible rate cut in July, with a strong likelihood of an earlier move in June, Trivedi said.
