Mumbai, Jan 8 || Silver prices fell sharply on Thursday as selling pressure increased ahead of the annual rebalancing of global commodity indexes and the release of key US economic data.
On the Multi Commodity Exchange (MCX), silver dropped nearly 3.5 per cent to trade below Rs 2,42,000 per kilogram during the session.
The decline came after passive investment funds were expected to reduce their holdings in precious metals futures to match new index weightings.
The selling is seen as heavier than usual following the strong rally in gold and silver in recent months.
While writing the article, silver moved between an intra-day low of Rs 2,48,163 and a high of Rs 2,51,889, compared with the previous close of Rs 2,50,605.
In the previous trading session, MCX silver had already fallen sharply, slipping by as much as Rs 11,700 per kilogram to touch a low of Rs 2,47,100.