Silver Price Crashes By 4% In Comex Futures, Post US Rate Hike: Sell Off Escalates

Silver price crashed by 4% in the Comex futures as sell off escalates, post US rate hike by 75 bps. On the other hand, the US dollar index has strengthened to a record high, dragging the commodity prices down. So, gold and silver both are performing weak globally. Today, on September 24, in India, silver price fell by Rs. 500/kg, taking the metal's rate down to Rs. 56,300/kg. In Chennai, Bangalore, Kerala, and Hyderabad silver price is quoted at Rs. 61,500/ kg.

Meanwhile, risk sentiments intensified in the global stock markets. Nikkei fell to 27,153.83 points, and Hang Seng Index fell to 17,933.27 points falling. In the US, S&P 500 fell to 3,693.23 points, down by 1.72%, and Dow Jones Industrial Average fell to 29,590.41 points, down by 1.62%.

In the Comex futures, silver was quoted at $18.835 down by 3.99%, and on the previous day, the metal closed at $19.617. In the past 1 year, in Comex silver prices have fallen sharply by 17.67%. In the spot market, silver prices stood at $18.93, down by 1.60%. Significantly, the US dollar index in the spot market stood at 113.02, up by 1.50%, on the last trading day. In the Mumbai Commodity Exchange (MCX), silver September futures are quoted at Rs. 56275/kg, down by 3.02%.

"If you prefer Silver, we are looking at a similar strategy that involves buying 1 December Silver $18.50 call at 75 cents as our long call. We then simultaneously sell 1 December Silver $19.00 call at 60 cents as our short call. This action creates our premium, which is 15. We then multiply that by $50 to account for Silver's multiplier to get $750, or our total premium paid (plus any commissions or clearing fees)," analyst Phillip Streible told Kitco News, commenting on the present market status.

Today's silver rates in major Indian cities: