Bullion futures extend losses for second day

New Delhi: Silver prices extended losses for the second straight day in futures trade on Friday as investors intensified profit-booking amid a firm US dollar and easing global geopolitical tensions. On the Multi Commodity Exchange (MCX), silver futures for March delivery dropped by Rs 8,198 per kilogram in a business turnover of 6,160 lots. During the intraday trade, the white metal slumped Rs 14,628, or 6 per cent, to hit a low of Rs 2,29,187 per kg.

On Thursday, silver had depreciated by Rs 25,035, or 9.3 per cent, to close at Rs 2,43,815 per kg. “Silver prices fell again on Friday, ending a short-lived two-day rebound as the recovery failed to sustain. Rising volatility across precious metals led to broad deleveraging, with silver underperforming as hopes of dip-buying faded quickly,” Renisha Chainani, Head - Research at Augmont, said.

Akshat Garg, Head - Research & Product of Choice Wealth, said, “Silver has come off mainly because it had run up too fast in a short period. Over the past year, prices had moved sharply higher and a lot of optimistic positioning had already been built in.

“When markets are stretched like that, even small changes in global cues can trigger a correction. A slightly stronger dollar and some cooling in global risk appetite are prompting investors to cut exposure to volatile assets,” Garg added. Gold futures opened on a weak note but pared all of its losses later in the day to trade higher at Rs 1,53,047 per 10 grams, up by Rs 976, or 0.64 per cent on the MCX.

In the previous session, it had slipped Rs 975, or 0.64 per cent, to settle at Rs 1,52,071 per 10 grams. Mirroring the domestic trends, silver and gold prices weakened on the Comex in the international markets. Silver futures for March delivery fell by $4.78, or 6.23 per cent, to $71.93 per ounce.