Silver Price Maintains Stability Amidst Decline in Oil, Indication of Higher Interest Rates Following Fed Minutes, Dollar and Yields Offer Support

Indian Silver Prices Slip Amid Easing Geopolitical Tensions

On Thursday, 21 May, silver prices in India were muted but in the red, as optimism regarding easing geopolitical tensions in the Middle East offset lingering concerns over inflation and the possibility of higher-for-longer global interest rates. On the Multi Commodity Exchange (MCX), silver rates slipped 0.8% to ₹2,72,135 per kg, while MCX gold price remained flat at ₹1,59,706 per 10 grams.

The softer U.S. Treasury yields, lower oil prices, and a weaker dollar helped limit downside pressure on precious metals. Market participants also assessed the latest Federal Reserve meeting minutes, which indicated policymakers remained cautious on inflation and saw little urgency to cut interest rates amid a resilient U.S. labour market.

International Markets

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In the international markets, Spot silver held steady at $75.96 per ounce in early trade, while spot gold remained largely unchanged at $4,543.96 per ounce by 0104 GMT after posting gains of more than 1% in the previous session. U.S. gold futures for June delivery edged 0.2% higher to $4,545.50 per ounce.

Investor sentiment remained focused on developments surrounding negotiations between Washington and Tehran. U.S. President Donald Trump said discussions with Iran were approaching the final stages, although he warned that further attacks could follow if Tehran failed to agree to a deal. The country's Revolutionary Guards stated that any repeat attack on Iran could trigger a broader regional conflict extending beyond the Middle East.

Support from Fed Outlook and Softer Yields

Despite geopolitical uncertainties easing slightly, precious metals found support from declining U.S. Treasury yields and weakness in the dollar. The yield on the benchmark 10-year Treasury note eased to 4.57% from 4.67% in the previous session, improving the appeal of non-yielding assets such as silver and gold. At the same time, the U.S. dollar retreated from a six-week high as optimism over a possible U.S.-Iran agreement reduced demand for the greenback as a safe-haven asset.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Oil prices also declined amid expectations that tensions in the Middle East could cool if negotiations succeed, helping ease concerns about energy-driven inflationary pressures. Meanwhile, minutes from the Federal Reserve's April policy meeting showed that a majority of policymakers believed further monetary tightening could become necessary if inflation remains persistently above the central bank's 2% target.

Key Levels to Watch

According to Renisha Chainani, Head - Research at Augmont, Silver's loss of the $75 support level points to continued downside, with $71 and $67 as the next key targets. For the yellow metal, she predicted that gold's break below $4500 has cleared the way toward the March low near $4350, with resistance at $4600–$4800. The higher-highs/higher-lows structure holds above $4300, indicating pullbacks remain consistent with re-accumulation rather than distribution.