Silver futures crash over 6% on weak global cues

Reversing early gains, silver prices crashed by 6.50% to Rs 50,370 per kg in futures trade today on nervous off-loading of positions by speculators, taking weak cues from global market.

A weak spot market trend as demand dried up at prevailing levels also dampened the trading sentiments.  

At the Multi Commodity Exchange, silver for delivery in July dipped by Rs 3,500, or 6.50% to Rs 50,370 per kg, with a business turnover of eight lots. 

Similarly, the white metal for delivery in September tumbled by Rs 3,477, or 6.38% to Rs 50,980 per kg, with a turnover of three lots.

It had risen to to Rs 55,223 per kg in early trade today. 

Analysts attributed the plunge in silver futures prices to a weakening trend in the global market after strengthening dollar reduced the demand for the precious metals.

In addition, sluggish demand at the domestic spot markets at prevailing levels also led to the decline in silver futures prices, they added.

Silver prices nosedived by Rs 7,200 to Rs 53,300 per kg in the bullion market here.

Meanwhile, silver in London fell sharply by 7.44% to $32.46 an ounce, taking losses to 31% since April 25, when the metal has soared to the highest level since 1980.