Mumbai, Sep 7: Silver prices moved lower in futures trading on Monday as traders reduced their positions, putting pressure on the precious metal after recent gains.
On the Multi Commodity Exchange (MCX), silver contracts for December delivery fell by Rs 975, or 0.41 per cent, to Rs 2,36,683 per kg. Trading activity stood at 1,512 lots.
Market participants said the decline was mainly due to profit-taking and a reduction in bets on further price gains. The move reflects some caution among traders as global markets assess the outlook for interest rates and economic growth.
Silver has remained volatile in recent sessions, with international prices also coming under pressure. Spot silver was down around 1 per cent on Monday as stronger US employment data increased expectations that the Federal Reserve could keep interest rates higher for longer.
Higher interest rates can weigh on precious metals because they make interest-bearing assets more attractive compared with commodities such as silver that do not generate regular income.
Investors are now watching upcoming US inflation data for fresh clues about the Federal Reserve’s next policy move. Any change in expectations around interest rates, the US dollar or bond yields could influence silver prices in the coming sessions.
Despite Monday’s decline, silver continues to attract attention because of its dual role as both a precious metal and an industrial commodity. Demand from sectors such as electronics, solar energy and other manufacturing activities remains an important factor for its longer-term outlook.
For now, traders are likely to remain cautious, with global economic data and central bank signals expected to keep silver prices volatile.