Silver prices fell sharply on Thursday while Indian equities continued their steep decline. The Nifty dropped by about 400 points, or 1.74%, to 22,200, moving close to its 52-week low. The Sensex also fell by more than 1000 points.
The pressure extended to the domestic precious-metals market. Silver for the 4 December futures contract on the Multi Commodity Exchange declined by about 3000 rupees to 220418 rupees per kilogram.
Gold moved in the opposite direction on the domestic market. MCX gold rose by 100 rupees to 149198 rupees per 10 grams. International trading was also mixed, with gold gaining slightly while silver weakened.
International precious-metals movement
On COMEX, gold was trading with a marginal gain at 4,147.17 dollars per ounce. Silver declined by 1.90% and was trading below 60 dollars per ounce.
The movement showed a clear contrast between the two metals. Silver faced heavier selling pressure, while gold recorded a modest rise in both the domestic and international markets.
Factors linked to the silver decline
The available market update linked the weakness in metals to strength in the American bond market and a stronger dollar. It also identified lower demand for silver as a factor behind the fall in its price.
Gold's slight rise was linked to buying by China, which was described as continuing to purchase the metal. These factors accompanied the separate movements in gold and silver during Thursday's trading session.
The market figures cover futures and international prices, so they represent trading levels rather than a single retail rate for every buyer. Domestic prices also differ according to the contract, market and unit used.
Conclusion
Silver saw the sharpest decline among the metals covered, falling to 220418 rupees per kilogram for the 4 December futures contract, while gold rose modestly on MCX and COMEX.
Frequently Asked Questions
Q. How much did silver fall on MCX?
Silver fell by about 3000 rupees to 220418 rupees per kilogram for the 4 December futures contract.
Q. What was the MCX gold price?
Gold rose by 100 rupees to 149198 rupees per 10 grams.
Q. What happened to the Nifty?
The Nifty fell by about 400 points, or 1.74%, to 22,200.
Q. How did COMEX silver perform?
COMEX silver declined by 1.90% and traded below 60 dollars per ounce.
Q. What factors were linked to silver's decline?
The update linked the fall to a stronger American bond market, a stronger dollar and lower silver demand.
