CHENNAI: Silver prices in the city fell by 85,000 per kg across Saturday, as global markets reacted to US President Donald Trump’s nomination of Kevin Warsh as the next chair of the Federal Reserve. Analysts said the move eased existing concerns over the central bank’s independence and strengthened the US dollar.
In Chennai, silver prices dropped twice in a single day. After falling by Rs 55 per gram (Rs 55,000 per kg) in the morning session, prices slipped by another Rs 30 per gram (Rs 30,000 per kg) in the evening session.
Overall, silver fell by Rs 85 per gram (Rs 85,000 per kg) and is now selling at Rs 320 per gram and Rs 3.20 lakh per kg.
This comes a day after silver had surged sharply, jumping by Rs 25 per gram and Rs 25,000 per kg in a single session to touch Rs 425 per gram and Rs 4.25 lakh per kg.
Meanwhile, gold fell by Rs 7,600 per sovereign and Rs 950 per gram in the Saturday morning trading session, influenced by the same global factors that weighed on silver. It is currently selling for Rs 1,19,200 per sovereign and Rs 14,900 per gram.
Silver outperforms gold year-on-year
Silver prices have risen much faster than gold year-on-year, climbing about 199% compared with gold’s 92.7% increase. Silver rose from Rs 107 per gram to Rs 320 per gram (Rs 3.20 lakh per kg), while gold increased from Rs 7,730 per gram (Rs 61,840 per sovereign) to Rs 14,900 per gram (Rs 1,19,200 per sovereign).