- Silver prices on MCX fell about 10% amid a global metals sell-off
- Silver MCX price is down 36% from record highs
- Fall follows Trump's announcement of Kevin Warsh as Fed Chair successor
Continuing on the sharp drawdown over the last two days, Silver prices fell again Sunday morning, falling up to 10% on the MCX as the global sell-off in the metals market continues.
The Silver MCX is currently trading at around Rs 2.65 lakh, accounting for a 9% fall from the last closing price. The Silver MCX prices are down 36% from record highs, a drawdown that is part of a larger correction in precious metals.
The fall in the silver price comes on the back of Donald Trump's announcement of Kevin Warsh becoming the successor to Jerome Powell as the US Federal Reserve Chairman.
Warsh is seen as a conservative who is expected to hold a more hawkish stance. This means Warsh could bring forth a lot of rate cuts that Trump has been yearning for, which in turn could support the dollar and put downward pressure on metals.
The massive drawdown in gold and silver was also driven by heavy speculative trading and profit-booking, following an unprecedented rally in precious metals that led investors resort to safe-haven assets, especially amid increased volatility in equity markets.
"A long profit-taking after an insane rally. When assets run far ahead of fundamentals, corrections are normal. A stronger dollar and stretched prices are making investors book profits," said Aakanksha Gupta, a SEBI Registered Research Analyst
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