Comex Silver Prices Plummet 3% to $86 per Ounce Amid Profit Booking and Escalating US-Israel-Iran Tensions

Silver Prices Decline Amid US-Israel and Iran Conflict

The international spot price of silver declined sharply during early trade on Comex, down 2.94% to $86.24 per ounce on March 3, following a massive rally induced by the US-Israel and Iran conflict. The metal briefly surged past $90/oz earlier in the day, reaching its peak performance at $94 per ounce during intraday trading on Monday.

The decline in silver prices also follows the strength of the dollar, which was trading at 91.917 against the rupee as of 12:49 pm IST. Investors in India are closely awaiting the market's reaction when trading opens after Holi.

In the domestic market, the futures price of silver closed the Monday session below 0.9% at Rs 2,80,090 per kilogram. The Indian Bullion Jewellers Association (IBJA) pegged the standard price of gold at Rs 1,67,471 per 10 grams, and silver at Rs 2,89,848 per kilogram at yesterday's evening trade.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Middle East Tensions Keep Silver on Edge

The ongoing US-Israel and Iran conflict is likely to increase volatility in the silver market, with heightened geopolitical tensions typically increasing safe-haven demand for precious metals. While crude oil prices may face a major threat from the war-like escalation in West Asia, any disruption to Middle East energy supply routes would lift crude oil prices, indirectly supporting silver as an inflation hedge.

However, a stronger USD can put pressure on metal prices in the short term, containing gains. Industrial demand remains a supportive medium-term factor, but near-term direction will be driven largely by headlines related to the conflict and broader risk sentiment. As a result, traders should be prepared for high volatility and price swings driven by geopolitical headlines and currency movements.