Silver rate today: Silver prices slipped marginally on Thursday as a stronger dollar and fading hopes of near-term interest rate cuts continued to pressure the metal. Expectations for rate cuts weakened after higher oil prices and recent US inflation data signalled persistent price pressures. Gold prices also slipped marginally.
MCX silver rate fell 0.86% to ₹2,66,174 per kg while MCX gold price was down o.4% to ₹1,61,081 per 10 grams.
Spot silver slipped 0.3% to $85.49 per ounce. Spot gold eased 0.1% to $5,172.86 per ounce as of 0221 GMT after falling over 1% in early deals, while US gold futures for April delivery were unchanged at $5,178.
Among other precious metals, spot platinum gained 0.1% to $2,171.19 per ounce and palladium rose 0.8% to $1,650.52.
What drove the fall in prices?
The fall was mainly led by a firm dollar. The US dollar strengthened 0.1%, making dollar-priced bullion more expensive for holders of other currencies.
Moroever, Iran warned that the world should brace for $200-a-barrel oil after its forces struck merchant ships on Wednesday, while the International Energy Agency urged a massive release of strategic reserves to counter one of the worst oil shocks since the 1970s.
Now in its 13th day, the US-Israeli war with Iran continues to disrupt oil production and refining activity across the Middle East. Oil prices surged in early trade, intensifying inflation concerns as supplies from the Gulf remained constrained. Brent crude futures jumped $6.5, or 7.13%, to $98.5 per barrel at 0200 GMT, while US West Texas Intermediate (WTI) crude rose $6.1, or 7.1%, to $93.43 per barrel.
Tankers in the strait have remained stranded for more than a week, and producers have suspended output as storage facilities near capacity while Iraqi security officials also informed that Iranian explosive-laden boats struck two fuel-oil tankers.
On the macroeconomic front, the US consumer price index rose 0.3% in February, matching forecasts and accelerating from January’s 0.2% increase. On an annual basis, CPI increased 2.4% in the year to February, also in line with expectations. The inflation data dampened expectations of interest rate cuts by the US Federal Reserve.
Investors are now awaiting the release of January’s delayed Personal Consumption Expenditures (PCE) index on Friday.
