New Delhi, February 16 Silver prices fell by nearly 2 per cent to Rs 2.4 lakh per kilogram in futures trading on Monday, driven by weak global trends and subdued demand in domestic spot markets.
On the Multi Commodity Exchange (MCX), the white metal for March delivery plunged by Rs 3,630, or 1.49 per cent, to Rs 2,40,730 per kilogram in a business turnover of 5,803 lots.
In international markets, Comex silver futures for the March contract were trading 1.45 per cent lower at USD 76.83 per ounce in New York.
Silver fell more than 1 per cent to USD 76 per ounce, reversing gains from the previous session, as trading volumes remained thin due to market holidays in the US, China, and several other countries, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
On Friday, the white metal had jumped by nearly 3 per cent after soft US inflation data reinforced expectations that the Federal Reserve would begin cutting interest rates later this year.
Market participants are currently pricing in a rate cut in July, with a strong probability of a move in June. Investors are now awaiting the release of the Fed's latest meeting minutes and the core Personal Consumption Expenditures (PCE) price index report for further direction on monetary policy, Trivedi added.
Meanwhile, markets in mainland China remained closed this week for the Lunar New Year holidays. Trivedi noted that Chinese traders had driven a speculative rally in precious metals in recent weeks, prompting authorities to curb market risks through various measures.
"Silver peaked above USD 120 an ounce in late January before dropping sharply to around USD 64 earlier this month as sentiment reversed," he said, adding that MCX silver prices may drop to Rs 2.35 lakh per kg amid a weak sentiment in the world markets.
