Silver futures fall for second session on US rate concerns

• Silver futures declined by Rs 1,743 to Rs 2,37,574 per kg on the MCX

• Comex silver futures fell 1 per cent to $65.75 an ounce in New York

• Expectations that US interest rates will remain higher for longer continued to weigh on sentiment

Silver futures extended their decline for a second consecutive session on Tuesday, falling by Rs 1,743 to Rs 2.37 lakh per kilogram as expectations of prolonged higher interest rates in the US weighed on the metal.

On the Multi Commodity Exchange, silver futures for December delivery declined by Rs 1,743, or nearly 1 per cent, to Rs 2,37,574 per kg.

“MCX silver futures are struggling to find fresh momentum, with sentiment weighed down by growing expectations that interest rates will stay higher for longer,” said Renisha Chainani, Chief Research Officer at Augmont.

Silver also traded lower in international markets. Comex futures for December delivery dropped 1 per cent to $65.75 an ounce in New York.

Investors will now closely follow comments from US Federal Reserve officials for further indications of the central bank’s policy direction, Chainani said.

The Federal Reserve raised its policy rate by 25 basis points last week and indicated that further increases could follow in the coming months.

With few major US economic data releases scheduled this week, traders will monitor the remarks of Fed officials for clues on whether another rate increase could be considered in October. Movements in crude oil prices will also remain in focus, Chainani added.

With PTI inputs