Indian Silver Price Fall Rs. 600 Today, Investors Anticipating Further Rate Hike By US Fed

Indian silver prices have fallen sharply in one day, after the US Federal Reserve Chairman Jerome Powell yesterday said that they can initiate rate hikes again to control inflation. As an immediate impact, the silver price fell by Rs. 600/kg, in India today. On August 27, silver is quoted at Rs. 54,800/kg. On the contrary, the US Dollar index gained sharply.

Jerome Powell yesterday said, "Restoring price stability will likely require maintaining a restrictive policy stance for some time...another unusually large increase (rate hike) could be appropriate at our next meeting. We are now about halfway through the inter-meeting period. Our decision at the September meeting will depend on the totality of the incoming data and the evolving outlook."

However, "[Powell] is trying to get away from what's going to happen, which is going to be hyperinflation. Wait until the price of oil starts skyrocketing again," Todd Horwitz, Chief Strategist at BubbaTrading.com said worriedly. Fed chair thinks that, at some point, as the stance of monetary policy tightens further, it likely will become appropriate to slow the pace of increases. These remarks have triggered the commodity markets including silver markets to show a falling trend today.

In the Comex futures, silver was quoted at $18.775 falling by 1.80%, and yesterday the metal closed at $19.12. In the past 1 year, in Comex silver prices have fallen sharply by 19.86%. In the spot market, silver prices stood at $19.01, and fell by 1.79%. Significantly, the US dollar index in the spot market stood at 108.83. In the Mumbai Commodity Exchange (MCX), silver September futures are quoted at Rs. 54816/kg, falling by 1.03%.

Today's silver rates in major Indian cities:

City	Silver rate (100 grams)
Mumbai	Rs. 5480
Delhi	Rs. 5480
Ahmedabad	Rs. 5480
Kolkata	Rs. 5480
Chennai	Rs. 6070
Bangalore	Rs. 6070
Hyderabad	Rs. 6070