The Nifty metal index started the day on a sour note and fell 3% after silver prices crashed on the multi commodity exchange on Sunday. Silver plunged 36% from its all-time high of Rs 4,20,048 per kg to a record low of Rs 2,65,652 per kg on the MCX.
Continuing on the sharp drawdown over the last two days, silver prices fell again up to 10% on the MCX as the global sell-off in the metals market continues. The MCX silver is currently trading at around Rs 2.65 lakh, accounting for a 9% fall from the last closing price.
Other major metal stocks also dragged with shares of Hindustan Zinc Ltd. trading 11.11% lower at Rs 564 apiece, Hindustan Copper Ltd. plunging over 14% to Rs 586.65, National Aluminium Company Ltd. trading 10% lower at Rs 348.05, and Vedanta Ltd. falling over 5% to Rs 644.80 apiece.
Commodity prices have been volatile globally ever since US President Donald Trump nominated Kevin Warsh as the new Federal Reserve Chair.
His tenure will likely result in an appreciation of the US greenback, which may drive investors away from safe haven assets such as gold and silver.
However, his view appears to have softened over the last few months. Warsh has aligned closely with Trump's push for lowering interest rates and has been seen arguing in favour of the same. Still, analysts expect him to revert back to old ways as soon as inflation pressures start mounting.
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