Silver Prices Surge by Over 1,000 Percent Amid Weakening US Dollar

Silver Prices Surge on Weak US Dollar and Global Market Gains

Key Figures:

• Rs 2,77,602: Silver price per kilogram on the Multi Commodity Exchange (MCX) for May delivery
• Rs 10,442: Increase in silver price on the MCX for May delivery
• 4%: Percentage increase in silver price on the MCX for May delivery
• USD 89.59: Silver futures price per ounce in New York
• USD 5.07: Increase in silver futures price per ounce in New York
• USD 90: Target price for silver
• USD 95: Next upside level for silver price

Market Analysis

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On Tuesday, silver prices jumped by Rs 10,442 to Rs 2,77,602 per kilogram in the futures trade on the Multi Commodity Exchange (MCX), tracking strong gains in the global markets. The weak US dollar boosted demand for the precious metal, leading to a rebound in silver prices after a decline in the previous session.

Global Market Trends

In the overseas markets, silver futures for May contract gained USD 5.07, or 6%, to trade at USD 89.59 per ounce in New York. The price rebounded to around USD 90 after briefly slipping below USD 80 in the previous session, supported by a pullback in the US dollar.

Economic Factors

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The expectations of a sooner-than-expected end to the Iran conflict reduced safe-haven demand for the dollar, allowing precious metals to recover. US President Donald Trump indicated that the military operation in Iran is nearing completion and progressing faster than the initial four-to-five-week timeline. Investors are now focusing on the upcoming US inflation indicators, including the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index, which will provide further signals on inflation trends and potential monetary policy direction.

Outlook

After achieving the USD 90 per ounce target, silver remains supported and continues to show the upward momentum, with the next upside level seen around USD 95 per ounce (equivalent to Rs 2.85 lakh per kg in the domestic markets). However, any short-term corrections in prices could attract fresh buying interest from investors.