Silver Price Stalls as Crude Oil Rally Counterbalances Weakening US Dollar

Financial Report: Precious Metals Market Update

MCX Silver and Gold Prices Recover on Friday

On Friday, MCX silver prices recovered from early losses to close 0.4% higher than its previous close at ₹2,69,186 per kg, while MCX gold prices advanced 0.4% to ₹1,60,401 per 10 grams. The precious metals had declined initially due to surging crude oil prices amid the prolonged US-Iran war, but the losses were offset by a softer dollar.

International Market Update

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In the international market, Spot silver rose 1.4% to $84.96 per ounce, while Spot gold gained 0.8% to $5,118.75 per ounce. US gold futures for April delivery remained unchanged at $5,123.30. Other precious metals, including Spot platinum and palladium, also advanced, with Spot platinum rising 0.9% to $2,151.97 and palladium climbing 1.4% to $1,640.64.

Market Analysis

Despite the uptick in precious metal prices, bullion has declined roughly 1% so far this week due to concerns over inflation and uncertainty around the Federal Reserve's ability to cut rates if oil prices remain elevated. The weaker dollar and easing US 10-year Treasury yields have, however, improved the attractiveness of non-yielding assets like gold.

Key Levels to Watch

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Experts believe that strong fundamentals and safe-haven demand could continue to drive prices higher in the near term, even as short-term corrections offer buying opportunities for investors. Analysts maintain a bullish outlook on both gold and silver, with Renisha Chainani, Head - Research at Augmont, predicting that silver could reach ₹285,000 (upside target of $95) and gold could move towards ₹163,500 (upside target of $5250) and ₹165,000 (upside target of $5300).

Investor Advisory

Tata Mutual fund advises investors to take advantage of any decline in prices due to a dollar rally or ease in tensions to accumulate or invest in gold and silver.