COMEX silver was trading at $64.09 per ounce, down $0.903, or 1.39%, from the previous close of $64.63. The contract touched a high of $64.88 an ounce and a low of $63.845 an ounce.
The fall comes a day after silver prices in India dropped sharply.
Silver declined ₹6,000 to ₹2.40 lakh per kilogram in New Delhi on Thursday (August 13), according to the All India Sarafa Association. The correction followed a strong run-up in prices and coincided with a broader sell-off in precious metals.
Investors have been booking profits after bullion prices rallied on expectations of softer US monetary policy. While the July US Consumer Price Index came broadly in line with expectations, markets are now looking to upcoming economic data for further clues on the Federal Reserve’s policy path.
Silver is also sensitive to industrial demand because of its use in sectors such as electronics, solar equipment and other manufacturing applications. This leaves prices exposed to changes in both investment demand and the global economic outlook.
India’s silver imports have also weakened.
Silver imports fell 66.1% year-on-year to $171.68 million in July, while imports during April-July declined 50.81% to $718.42 million, according to Commerce Ministry data. The decline came after the government raised the import duty on precious metals from 6% to 15% with effect from May 13.
The near-term direction of silver prices will depend on the balance between profit booking, US interest-rate expectations and the outlook for industrial demand. With prices still at elevated levels, volatility could remain high.
-With Reuters inputs
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