Silver prices resumed their losing streak in Tuesday’s trade on November 3, after a brief recovery, as crude oil prices jumped following reports of a US strike on Iran’s Qeshm Island. The development fuelled inflation concerns and reinforced expectations that global central banks could keep interest rates higher for longer.
The December silver futures contract on the MCX slipped ₹8,528 per kg to hit its lowest level since late November 2025 at ₹1,75,251. The decline erased all of Monday’s gains of ₹4,647 and widened the metal‘s year-to-date losses to 25%.
Gold prices also retreated after the previous session’s gains, with the yellow metal falling nearly ₹2,079 per 10 grams to ₹1,37,863. After posting losses for two consecutive months, both precious metals have started November on a volatile note.
Crude oil rebounds on reports of US strike on Iran
Crude oil prices staged a strong recovery, rebounding 1% after reports that the United States had struck Iran’s Qeshm Island. The development raised concerns about an escalation in the eight-month conflict and prolonged disruptions to oil supplies from the Middle East.
The reported attacks came days after US President Donald Trump indicated that he wanted to give diplomacy more time before considering renewed military action.
Meanwhile, investors also turned cautious ahead of the US midterm elections, which will determine control of both chambers of Congress. A potential Democratic takeover has added to market uncertainty.
The outcome of Tuesday’s vote could fundamentally reshape US President Donald Trump’s final two years in the White House. Republicans and Democrats are battling for control of Congress and key governors’ offices amid widespread disaffection over high prices.
Investors are also awaiting the closely watched US jobs report due later this week, which could provide fresh insight into labour market conditions and influence expectations for Federal Reserve monetary policy.
Higher interest rate expectations weigh on precious metals
Elevated energy prices have strengthened expectations that the Federal Reserve will keep interest rates higher for longer, increasing the opportunity cost of holding non-yielding assets such as gold and silver.
Traders currently see a 75% chance of a rate hike in December, according to CME’s FedWatch tool.
Separately, the World Gold Council lowered its forecast for growth in gold investment this year to 200 metric tonnes from 400 tonnes previously, citing weaker appetite for bars and coins, although it raised its estimate for central bank purchases.
Gold and silver technical outlook: Key support and resistance levels
Ponmudi R, CEO of Enrich Money, said the next support for silver is placed at ₹170,000– ₹172,000. On the upside, immediate resistance is seen at ₹186,000– ₹188,000, followed by ₹194,000– ₹196,000. The rebound stalled below ₹1,86,000, leaving a lower high on the chart.
Ponmudi said the RSI, near 23, remains in extremely oversold territory, although the MACD histogram continues to widen on the downside, indicating that selling pressure has yet to ease.
For gold, immediate resistance is placed at ₹140,000– ₹141,000, followed by ₹143,000– ₹143,700. The next support zone lies at ₹134,000– ₹135,000. The RSI, near 32, remains weak, while the MACD histogram continues to widen on the downside, signalling persistent bearish momentum.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
