Silver prices fall to Rs 2.70 lakh/kg amid oil rally and dollar strength

Silver prices declined by Rs 1,832 to Rs 2.70 lakh per kilogram in futures trade on Monday as a rally in crude oil prices amplified inflation concerns, while strength in the US dollar in overseas markets weighed on investor sentiment.

On the Multi Commodity Exchange (MCX), the white metal for July delivery depreciated by Rs 1,832, or nearly 1 per cent, to Rs 2,70,054 per kilogram, extending losses for the third straight session.

Analysts said the surge in crude oil prices has fuelled inflation concerns globally, strengthening



expectations that major global central banks may maintain a tighter monetary policy stance for longer, which in turn pressured precious metals.

?Silver witnessed sharper selling pressure on Monday in line with global prices near the USD 75 per ounce range, as industrial demand concerns and profit booking weighed on sentiment,? Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

Crude oil prices surged above USD 111 per barrel, driven by escalating geopolitical tensions in the Middle East and rising fears of supply disruptions, he added.