Silver Prices Plummet 2% in India to ₹2.96 Lakh/Kg Amid Profit Booking, Market Closely Watches Trump-Xi Jinping Talks

Silver Prices Decline in India Amid Global Market Volatility

Silver prices in India fell by 1.9% to ₹2,94,450 per kg on Thursday, 14 May, following a 6% surge in the previous session. The decline was attributed to profit booking after the Indian government unexpectedly raised import tariffs on gold and silver to nearly 15% from 6%, a move aimed at protecting the rupee and strengthening the country's foreign exchange reserves. Meanwhile, gold prices on the Multi Commodity Exchange (MCX) fell by 0.7% to ₹1,61,027 per 10 grams.

Global Market Trends

The international precious metal markets remained relatively subdued on Thursday, with investors focused on high-level discussions between US President Donald Trump and Chinese President Xi Jinping. Additionally, market participants were monitoring developments related to the Iran conflict. In the global market, spot silver slipped by 0.9% to $87.18 per ounce, while spot gold remained largely steady at $4,688.43 per ounce as of 0212 GMT. US gold futures for June delivery fell by 0.2% to $4,695.

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The government's decision to raise import tariffs on gold and silver is aimed at discouraging excessive bullion imports and easing pressure on the country's foreign exchange reserves at a time of global uncertainty. The tariff hike comes amid already strong safe-haven demand for bullion globally, driven by uncertainty surrounding US monetary policy, rising inflation concerns, and escalating geopolitical tensions linked to the Iran conflict.

Technical Outlook

According to Renisha Chainani, Head - Research at Augmont, Silver has broken above resistance at $83 and $85, with the next targets at $90 and $92. For Gold, Chainani stated that the yellow metal remains range-bound between $4,650 and $4,780. The precious metals declined on profit booking after surging in the previous session on India's decision to raise import tariffs on gold and silver to 15% from 6%.

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