Silver Price Sees Uptick Following PM Modi's Address, Investors Weigh Buying Opportunities

Silver Prices Surge as Crude Oil Gains and US-Iran Tensions Escalate

On Monday, the global white metal market experienced a significant gain, with silver prices jumping approximately 1% for the second consecutive session. In contrast, gold prices slipped marginally, weighed down by rising crude oil prices and a firmer US dollar.

Silver and Gold Prices in India

The MCX silver futures for July 2026 delivery surged ₹3,000, or 1.1%, to ₹2,64,922 per kg, continuing their upward momentum after a gain of ₹3,500 in the previous trading session. Conversely, MCX gold futures for June 2026 delivery declined by ₹532, or 0.3%, to ₹1,52,000 per 10 grams. This decline was largely attributed to the rising crude oil prices and a firmer US dollar, as traders adjusted their positions.

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International Market Trends

On the international front, spot silver gained 0.3% to trade at $80.57 per ounce, while spot gold slipped 0.8% to $4,676.02 per ounce. Furthermore, US gold futures for June delivery declined 1% to $4,684.50.

US-Iran Tensions and Crude Oil Prices

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

Rising crude oil prices and stalled US-Iran negotiations have intensified inflation concerns, reinforcing market expectations that the US Federal Reserve may refrain from cutting interest rates this year. The ongoing US-Iran tensions continue to pose a significant challenge for both gold and equity markets. US President Donald Trump rejected Iran's peace proposal, calling it unacceptable, and stated that the US remains committed to seizing Iran's remaining enriched uranium. Israeli Prime Minister Benjamin Netanyahu also reiterated that Iran's nuclear program continues to be a major threat despite recent military actions.

Global Dollar Index and Brent Crude Prices

The dollar index gained 0.20% after Brent Crude, the global oil benchmark, surged 5% to trade above the $105-a-barrel mark. At the same time, Prime Minister Narendra Modi on Sunday appealed to Indians to use petrol, gas, diesel, and similar resources judiciously, and also advised people to refrain from buying gold for a year amid the continuing West Asia crisis.

Impact on Gold Prices

Anuj Gupta, a market expert, stated that PM Modi's statement on gold could influence gold prices, potentially leading to a loss of momentum in the near term. Gupta also emphasized that global developments, geopolitical tensions, and international events will continue to play a major role in driving gold demand. Since India is a key consumer of gold, a slowdown in domestic buying could lead to a correction in gold prices.

Silver's Long-Term Potential

Mahesh M Ojha, AVP - Research at Kantilal Chaganlal Securities, emphasized that silver continues to hold strong long-term potential due to its extensive industrial applications across sectors such as solar energy, electronics, electric vehicles, and manufacturing. Ojha also stated that any meaningful correction in silver prices can be viewed as an opportunity for gradual accumulation by long-term investors rather than a reason for concern.

Technical Outlook

Ponmudi R, CEO of Enrich Money, provided a technical analysis of MCX Silver, stating that the metal is trading below the ₹2,63,000 zone, consolidating below key resistance after a sharp recovery from recent lows. The fragile macro outlook is keeping sentiment cautious, with immediate resistance at ₹2,65,000 and sustained movement above this level could extend the rally toward ₹2,66,000– ₹2,68,000. On the downside, ₹2,61,000 acts as immediate support, with ₹2,59,000– ₹2,58,000 as a stronger base should selling pressure resurface. The near-term bias remains cautiously bearish, with a deteriorating macro backdrop continuing to weigh on sentiment and cap recovery attempts.