Silver Price Surges Over ₹8,000 Amid Uncertainty Over Iran-US Tensions and Firming Dollar

Market Update

Silver prices surged by 3.2% or ₹8,340 to ₹2,68,009 per kg on the MCX on February 27, amidst uncertainty in US-Iran nuclear negotiations. The US dollar hovered near three-week highs, limiting gains in the yellow metal by making dollar-denominated gold more expensive for holders of other currencies.

International Markets

• Spot silver gained 0.6% to $88.81 per ounce, touching a three-week high on Wednesday.
• Spot gold was steady at $5,187.39 per ounce as of 0146 GMT, after climbing to a more than three-week high on Tuesday.
• US gold futures for April delivery edged up 0.2% to $5,204.10.
• Spot platinum advanced 0.6% to $2,286.53 per ounce, while palladium rose 0.5% to $1,794.13.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Geopolitical Tensions

The US and Iran remained locked in a tense standoff over Iran's nuclear activities, with both sides exchanging warnings after President Donald Trump ordered an expanded US military presence in the region. The ongoing uncertainty has underpinned gold's recent strength.

Interest Rate Expectations

Expectations of swift interest rate cuts in the US appeared to fade, as signs of resilience in the US economy, improving CEO confidence, and a more hawkish tone from central bank policymakers dampened hopes of aggressive easing.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Key Levels to Watch

Renisha Chainani, Head - Research at Augmont, noted that gold and silver prices extended their gains, hovering near a four-week high as safe-haven demand strengthened amid rising geopolitical tensions and continued uncertainty around U.S. trade policy. Key resistance levels for silver include $92 (~ ₹2,72,000) and $93 (~ ₹2,75,000), while for gold, the next resistance zones are $5,300 (~ ₹1,64,000) and $5,400 (~ ₹1,67,000).