Silver rate remained largely steady on Tuesday, 28 April, as investors awaited clarity on stalled peace talks between the United States and Iran. Investors are also tracking key central bank decisions this week to assess whether the ongoing Middle East conflict has altered the global interest rate outlook.
MCX silver rate shed 0.5% to ₹2,40,490 per kg, while MCX gold price was flat at ₹1,51,555 per kg.
Meanwhile, in the spot market, silver declined 0.8% to $74.91 per ounce. Gold prices also edged lower, with spot gold down 0.1% to $4,679.06 per ounce as of 0217 GMT, while U.S. gold futures for June delivery remained steady at $4,693.20. Among other precious metals, platinum rose 0.4% to $1,990.29, while palladium slipped 0.7% to USD 1,466.44.
Geopolitical tensions and rate outlook in focus
The decline came as the dollar strengthened and crude oil prices extended gains, with the key Strait of Hormuz largely shut, tightening supply expectations.
Higher crude oil prices tend to push inflation higher by increasing transportation and production costs, which in turn raises the likelihood of elevated interest rates. Although gold is typically seen as a hedge against inflation, higher interest rates reduce its appeal by making yield-bearing assets more attractive.
On the geopolitical front, uncertainty persisted after Donald Trump expressed dissatisfaction with Iran’s latest proposal to resolve the ongoing two-month conflict, according to a U.S. official. The lack of progress has dampened hopes for a resolution, with the conflict continuing to disrupt energy supplies, fuel inflation, and resulting in significant casualties.
Investors are now closely watching the outcome of the Federal Reserve’s two-day policy meeting, which concludes on Wednesday, where rates are widely expected to remain unchanged. Market participants are also tracking decisions from other major central banks, including the Bank of Japan, European Central Bank, and the Bank of England, for further cues on the global monetary policy path.
Silver Price: Key levels to watch
Renisha Chainani, Head – Research at Augmont noted that overall sentiment toward bullion remains cautious. A firmer dollar and rising Treasury yields are increasing the opportunity cost of holding gold. The key upcoming catalysts are the Fed’s April 29 rate decision, US Q1 GDP data on April 30, and any definitive progress in US–Iran diplomacy. Each event carries the potential to sharply reverse current price trends, stated the expert.
For Silver, she said, “Silver prices are consolidating in the range of $73 ( ₹2,35,000) and $82 ( ₹2,58,000). Either a side breakout or breakdown will give a further price move.”
Technically, gold faces resistance at $4,850 ( ₹1,55,000). A confirmed break above this level could open a path toward $5,000 ( ₹1,60,000). Immediate support is established at $4,650 ( ₹1,51,000), Chainani added.
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.
