Silver prices in India rebounded on Wednesday, snapping a two-day losing streak as easing oil prices and a softer dollar improved the metal’s appeal. The move came after U.S. President Donald Trump announced an extension of the Iran ceasefire, reducing immediate fears of an inflation spike and aggressive interest rate moves.
MCX Silver price jumped 2% or over ₹4,800 to ₹2,49,423 per kg, while MCX Gold rate added 1.3% or over ₹2,000 to ₹1,53,699 per 10 grams.
Meanwhile, globally as well, Spot silver rose 1.5% to $77.84 per ounce, tracking gains across the precious metals complex. The rally in silver also tracked a recovery in gold, which rose 0.9% to $4,755.11 per ounce after hitting its lowest level since April 13 in the previous session. U.S. gold futures climbed 1.1% to $4,772.90, signalling broader strength across the metals complex.
However, uncertainty persists. The extension appeared unilateral, with no immediate confirmation from Iran or U.S. ally Israel. Iran has also said it will not reopen the Strait of Hormuz while U.S. blockades remain in place, keeping oil supply concerns alive.
Oil prices reacted to the development, with Brent crude holding near $100 per barrel, while the U.S. dollar slipped as much as 0.2% after gains in the previous session — both key moves for precious metals.
Other precious metals also moved higher, with platinum rising 1.5% to $2,067.25 and palladium gaining 1.8% to $1,560.31.
What’s driving silver prices?
At the heart of silver’s rebound is a decline in the U.S. dollar. A weaker dollar makes silver cheaper for buyers holding other currencies, boosting demand. Following the ceasefire news, the dollar edged lower, reversing earlier gains and providing additional tailwinds for precious metals.
Meanwhile, cooling oil prices reduce fears of a sharp rise in inflation, which in turn lowers expectations of prolonged high interest rates. While crude prices remain elevated near $100 per barrel due to ongoing supply disruptions — particularly with the Strait of Hormuz still closed — the immediate risk of further escalation has eased. This has reduced the urgency around inflation fears, indirectly supporting silver.
At the same time, interest rate expectations remain a crucial piece of the puzzle. Federal Reserve chief nominee Kevin Warsh stated that he had made no commitments to cut rates, reinforcing the idea that policy decisions will remain data-dependent.
Furthermore, geopolitics continues to play a role. Despite the ceasefire extension, tensions remain unresolved. Iran has refused to reopen the Strait of Hormuz while U.S. military blockades persist, and peace talks have yet to resume after recent setbacks. This lingering uncertainty keeps safe-haven demand for silver intact, even as immediate risks subside.
For now, the rebound suggests that investors are not abandoning silver, but rather recalibrating positions as the macro environment evolves.
