Silver Prices Surge ₹11,000 on MCX as Dollar Weakens Amid Optimism of US-Iran Conflict Resolution

Precious Metals Report

Silver and Gold Prices Surge on Weakening US Dollar and Easing Crude Oil Prices

On Tuesday, silver prices climbed 4.2% or ₹11,179 to ₹2,78,339 per kg on the Multi Commodity Exchange (MCX), while gold prices advanced 1.15% or ₹1,850 to ₹1,62,149 per 10 grams. Spot silver rose 3% to $89.60 per ounce, while spot gold gained 0.8% to $5,179.52 per ounce.

The rebound in precious metal prices was driven by a weaker US dollar and easing crude oil prices following comments from US President Donald Trump indicating that the conflict in the Middle East could end soon. The US dollar gauge slipped 0.1%, extending the previous day's decline, making dollar-denominated bullion more affordable for investors holding other currencies.

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

Key Figures:

• Silver: ₹2,78,339 per kg (4.2% increase)
• Gold: ₹1,62,149 per 10 grams (1.15% increase)
• Spot Silver: $89.60 per ounce (3% increase)
• Spot Gold: $5,179.52 per ounce (0.8% increase)
• US Dollar: 0.1% decline

Market Analysis:

According to Joseph Thomas, Head of Research at Emkay Wealth Management, precious metal prices in global markets are influenced by geo-political developments. With the ongoing conflict easing, traditional macroeconomic drivers such as the outlook for US interest rates and movements in the Dollar Index are likely to regain importance in shaping the direction of precious metals prices.

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

Investment Outlook:

Renisha Chainani, Head - Research at Augmont, believes that silver remains firmly supported and is continuing its upward momentum, with the next upside target seen around $90 (~ ₹282,000). For gold, she expects prices to move towards $5,250 (~ ₹165,000) and $5,300 (~ ₹167,000) in the near term. Strong support is seen around the $5,000 (~ ₹158,000) level.