Silver Price Holds Steady Amid US Fed Uncertainty and Ongoing Oil Market Volatility

Silver Prices Steady in Volatile Trade Amid Uncertainty

Silver prices in India remained largely steady on Wednesday, 29 April, as investors stayed cautious ahead of U.S. Federal Reserve Chair Jerome Powell's remarks. The market is anticipating Powell's comments to offer clues on how policymakers are assessing the economic fallout from the ongoing Iran conflict.

The uncertainty surrounding stalled peace talks and elevated geopolitical risks has kept markets on edge, with investors refraining from taking aggressive positions. On the Multi Commodity Exchange (MCX), silver added 0.5% to ₹2,38,603 per kg, while gold was flat after rising 1% to ₹1,51,527 per 10 grams.

In comparison, spot silver rose 0.8% to $73.64 per ounce, holding firm despite broader market volatility. Gold, on the other hand, remained largely in the background, edging up just 0.1% to $4,597.07 per ounce after hitting its lowest level since 2 April in the previous session. U.S. gold futures were steady at $4,610.20.

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Market participants are widely expecting the Federal Reserve to keep interest rates unchanged at the end of its ongoing two-day meeting, with Powell's commentary likely to shape near-term direction for precious metals. Geopolitical developments continue to play a key role, with efforts to resolve the Iran conflict remaining stalled.

The rising Brent crude oil prices have stayed elevated above $110 per barrel amid reports that the U.S. may extend its blockade of Iranian ports. Rising oil prices are adding to inflationary pressures globally, complicating the outlook for central banks. Higher inflation typically supports precious metals, but the prospect of elevated interest rates reduces the appeal of non-yielding assets like silver and gold.

Investors are also closely tracking policy decisions from other major central banks this week, including the European Central Bank, the Bank of England, and the Bank of Canada, which could further influence global liquidity and commodity price trends.

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Renisha Chainani, Head - Research at Augmont, noted that markets are also focused on upcoming monetary policy decisions by the Fed, ECB, and BOJ this week. Persistent energy price inflation, driven by Middle East tensions, has strengthened expectations that central banks may maintain or further raise interest rates.

Technically, Chainani noted that gold has broken important support of $4,650 (₹1,51,000), with the next target being $4,550 (₹1,47,500). For the white metal, she said that silver is on the verge of breaking $73 (₹2,35,000). If prices sustain below this level, the next target is $70 (₹2,25,000).