Silver Price Surges 5.5% on MCX Amid Optimism over US-Iran Peace Hopes

Precious Metals Rally in India and Internationally

Market Update: March 25, 2024

The Indian precious metals market witnessed a significant shift in sentiment on Wednesday, March 25, as silver and gold prices surged due to a softer US dollar, declining crude oil prices, and rising optimism about a potential negotiated end to the Middle East conflict.

On the Multi Commodity Exchange (MCX), silver price jumped by 5.5% or over ₹12,000 to reach a high of ₹2,36,137 per 10 grams. Meanwhile, MCX gold price advanced by 4% or over ₹5,500 to reach a high of ₹1,44,434 per 10 gram.

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

Internationally, precious metals also soared. Spot Silver gained 3.6% to $73.78, while spot gold rose by 2.5% to $4,586.70 an ounce. US gold futures for April delivery gained 4.2% to $4,586.10, and spot platinum climbed by 2.2% to $1,978.10.

The sharp rise in silver prices coincided with investors reassessing the macroeconomic impact of the war, particularly after signs emerged that the United States was pushing for a settlement with Iran. This shift in market sentiment led to a notable unwinding of war-driven inflation fears that had weighed on precious metals in recent weeks.