Silver futures tumble over 3 pc as investors brace for US election outcome

New Delhi, Nov 3 (PTI) Silver prices on Tuesday declined over 3 per cent to Rs 1.77 lakh per kilogram in futures trade as investors pared exposure ahead of the US mid-term election outcome and reassessed the interest rate outlook.

On the Multi Commodity Exchange (MCX), the white metal futures for December delivery tanked Rs 6,168, or 3.36 per cent, to Rs 1,77,611 per kilogram.

The selloff in silver came as investors turned cautious ahead of the US mid-term election results, while weighing the outlook for interest rates and persistent inflation concerns, said Gaurav Garg, Head of Research at brokerage firm Lemonn.

The white metal remains more vulnerable, following its sharp October correction, he added.

In global markets, Comex silver futures for

the December contract slipped below the USD 50 per-ounce level, declining USD 1.82, or 3.58 per cent, to USD 49.07.

“Silver’s decline appears to be driven largely by macroeconomic headwinds and broad market deleveraging rather than any meaningful deterioration in its long-term fundamentals,” said Kaynat Chainwala, AVP – Commodity Research at brokerage firm Kotak Neo.

Elevated oil prices, firm US economic data and persistent inflation concerns have reinforced expectations that interest rates could remain higher for longer, supporting Treasury yields and reducing the appeal of precious metals, she said.

Chainwala said the sharp correction in technology stocks has added pressure on silver given its significant exposure to industrial segments such as semiconductors, AI infrastructure, consumer electronics and solar manufacturing.

Silver has underperformed gold in recent weeks, with the gold-to-silver ratio rising to above 79, its highest level in nearly a year, reflecting the market’s preference for relative safety of gold amid heightened uncertainty, she added. PTI HG HG BAL

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