Silver Price: Domestic silver futures tanked as much as 9 per cent on Wednesday tracking a fall in global precious metal rates, as a resurgent dollar prompted investors to reassess their positions after a record-breaking price rally. Multi Commodity Exchange (MCX) silver futures – due for a September 4 delivery – hit the lower circuit at 6 per cent (Rs 62,918) and continued to drop, as much as 9 per cent – or Rs 6,024 – to hit the Rs 60,910 mark on the downside. (Track Current Silver Price Here)
At 10:12 am, the MCX silver futures contract quoted at Rs 61,770, down 7.72 per cent (Rs 5,164) from its previous close. Currently, trading in MCX silver futures halts for 15 minutes when the price moves 6 per cent.
International silver prices followed gold lower, falling 2.8 per cent to $24.11 per ounce, having plunged 15 per cent the previous day.
The dollar index – which gauges the greenback against six currencies – was last seen trading 0.28 per cent higher, having risen as much as 0.30 per cent earlier on Wednesday.
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The closing rate of silver jewellery stood at Rs 71,211 per kilogram on Tuesday, excluding Goods and Services Tax, according to Mumbai-based industry body India Bullion and Jewellers Association. Precious metal prices in the country vary from state to state due to VAT or value added tax. Jewellery prices are calculated by taking into account factors such as excise duty and making charges.