Silver Price Drops Amid Strengthening US Dollar, US-Iran Diplomatic Efforts Underway

Silver Prices Decline on Tuesday Amid Renewed Tensions and Geopolitical Uncertainty

Silver prices declined on Tuesday, April 21, as the dollar firmed and investors turned cautious ahead of potential peace talks between the U.S. and Iran following renewed tensions over the weekend. The MCX silver price fell around 1% to ₹2,50,210 per kg, while the MCX gold rate was flat at ₹1,53,785 per 10 grams.

Spot Silver and Gold Prices Tracking Weakness

Spot silver prices fell 0.6% to $79.40 per ounce, tracking weakness across the precious metals complex. Gold prices also remained under pressure, easing 0.2% to $4,807.91 per ounce as of 0217 GMT, extending losses from the previous session when prices hit their lowest level since April 13. U.S. gold futures for June delivery were steady at $4,827.30.

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

Other Metals Also Affected

Among other metals, platinum declined 0.7% to $2,074, while palladium rose 0.3% to $1,556.16.

Key Drivers Behind Price Decline

The decline comes mainly on the back of a strengthening US dollar, making greenback-denominated commodities more expensive for holders of other currencies, weighing on metals including silver. Investor focus has now shifted to geopolitical developments, particularly whether the U.S. and Iran would proceed with talks in Islamabad and whether a ceasefire could be extended or lead to a broader peace agreement.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Crude Oil Prices Slip Amid Expectations of Eased Disruptions

In today's deals, crude oil prices slipped as investors reassessed supply risks amid expectations that potential peace talks could ease disruptions and allow more supply to flow from the region. The war, now in its eighth week, has triggered a significant energy-supply shock, keeping inflation concerns elevated and influencing central bank policy expectations, which in turn dampened the sentiment for precious metals.

Precious Metals No Longer Attractive

While precious metals are often seen as a hedge against inflation, elevated interest rates reduce their appeal by making yield-bearing assets more attractive.

Technical Outlook

According to Renisha Chainani, Head - Research at Augmont, silver has met its prior target of $82 (₹2,58,000). "Prices are expected to consolidate in the near term before advancing toward $84 (₹2,65,000) and subsequently $90 (₹2,80,000)," predicted the expert.

Key Support and Resistance Levels for Gold

For gold, Chainani said that gold continues to face resistance at $4,850 (₹1,55,000). A sustained move above this level could push prices toward $5,000 (₹1,60,000). Key support remains at $4,600 (₹1,51,000), added Chainani.

Silver Prices Holding Above Key Support Zone

Meanwhile, Mirae Asset Mutual Fund noted that silver prices are currently holding above the ₹2,48,000–2,45,000 support zone, which aligns with the 20-week moving average and remains critical for maintaining trend stability. The fund house added that a deeper weekly support is likely to lie near ₹2,40,000–2,35,000, marking the prior consolidation base.

Upside Potential for Silver

On the upside, Mirae Asset Mutual Fund noted that ₹2,60,000–2,65,000 remains a key resistance band, and only a sustained weekly close above this zone would confirm trend continuation, while failure could keep silver range-bound.