Silver rate today: Silver prices edged lower to ₹2.43 lakh per kg on MCX on Tuesday as rising US Treasury yields and growing expectations of Federal Reserve rate hikes overshadowed easing geopolitical tensions in the Middle East. Investors remained cautious ahead of key US inflation data, while stronger-than-expected economic indicators reinforced bets that the Fed could keep interest rates higher for longer, a negative for non-yielding assets such as silver.
MCX Silver price slipped 1% to ₹2,43,932 per kg, while MCX Gold rate was muted, down 0.25% to ₹1,54,396 per 10 grams.
Spot silver slipped 0.7% to $67.71 per ounce, while spot gold was little changed at $4,332.50 per ounce as of 0222 GMT. In the previous trading session, gold had fallen to its lowest level in more than two months as investors reassessed safe-haven demand amid easing geopolitical tensions.
The latest market moves came after Iran and Israel indicated they had suspended direct attacks following an appeal from US President Donald Trump. However, Tehran warned that it could resume military action if Israel continued strikes against Hezbollah in Lebanon, underscoring the fragile nature of the ceasefire.
Inflation and Fed Rate-Hike Bets Remain Key Headwinds
While hopes of reduced hostilities have eased some pressure on commodity markets, the conflict’s impact on global energy supplies continues to be a major concern. Now in its fourth month, the war has disrupted shipments through the Strait of Hormuz, pushing oil prices higher and fuelling worries about persistent inflation.
Higher energy costs have strengthened expectations that central banks, including the US Federal Reserve, may keep interest rates elevated for longer or even raise them further. Such an environment is typically unfavourable for non-yielding assets like silver and gold.
Bond markets remained under pressure after a stronger-than-expected US payrolls report for May reinforced expectations of tighter monetary policy. Investors are now increasingly pricing in the possibility of additional Federal Reserve rate hikes in the coming months.
Market pricing currently implies around a 60% probability of a Fed rate increase as early as October, while a quarter-percentage-point hike is almost fully priced in for December. According to the CME FedWatch Tool, traders are assigning more than a 70% chance of a rate hike by year-end.
Reflecting these expectations, the yield on the two-year US Treasury note stood at 4.170%, after touching 4.201% overnight, its highest level since early 2025.
Meanwhile, oil prices eased slightly after recent gains. Brent crude fell 0.7% to $93.57 a barrel after climbing as high as $98 overnight, while US West Texas Intermediate crude declined 0.7% to $90.62 a barrel.
Adding to the cautious outlook, Goldman Sachs said it expects the Federal Reserve to leave interest rates unchanged through 2026 and postpone any rate cuts until 2027, citing resilient economic growth and continued strength in the labour market.
Investors are now awaiting the release of US Consumer Price Index (CPI) data for May on Wednesday. The report is expected to show that higher energy prices continued to drive headline inflation higher, providing further clues on the Federal Reserve’s next policy move and potentially determining the near-term direction for silver and other precious metals.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
