Silver rate today: Silver prices declined sharply on Tuesday as a stronger U.S. dollar and escalating geopolitical tensions in the Middle East weighed on investor sentiment. Fresh U.S. military strikes in Iran pushed crude oil prices higher, intensifying concerns over inflation and the possibility of interest rates remaining elevated for a longer period.
On MCX, silver rate fell 1.3% to ₹2,72,985 per kg, while MCX Gold price lost 0.34% to ₹1,58,534 per 10 grams.
Meanwhile, in the international markets, Spot silver dropped 1.8% to $76.66 per ounce. Gold prices also weakened, with spot gold falling 0.7% to $4,537.54 per ounce as of 0218 GMT. Meanwhile, U.S. gold futures for June delivery edged up 0.3% to $4,538.50.
The U.S. dollar strengthened against all Group-of-10 currencies, while Treasury yields moved higher as cash trading resumed following a market break. The stronger greenback made dollar-denominated precious metals more expensive for overseas buyers, limiting demand for silver and gold.
Oil prices surge as U.S.-Iran tensions remain elevated
Geopolitical developments remained firmly in focus after U.S. Central Command said American forces had carried out strikes in southern Iran targeting missile launch sites and boats attempting to lay mines. The U.S. described the operations as defensive actions.
At the same time, diplomatic efforts continued in the region. Iran’s top negotiator and foreign minister were in Doha for discussions with Qatar’s prime minister regarding a possible agreement with the United States aimed at ending the three-month-old conflict. However, both Washington and Tehran reportedly played down expectations of an immediate breakthrough.
Separately, Israel said it would intensify strikes against Hezbollah while negotiations between the U.S. and Iran continued. Iran has maintained that any peace agreement must include an end to hostilities in Lebanon.
Earlier, U.S. President Donald Trump had said negotiations with Iran over an interim arrangement to extend the ceasefire and reopen the strait were “proceeding nicely.”
Brent crude futures climbed 2% during early Asian trading on Tuesday as tensions between the U.S. and Iran persisted. Rising crude oil prices have increased concerns that inflationary pressures could remain elevated globally, potentially forcing central banks to maintain tighter monetary policies for longer.
While precious metals are generally viewed as a hedge against inflation, higher interest rates reduce the appeal of non-yielding assets such as silver and gold.
According to CME Group’s FedWatch tool, markets are currently pricing in a U.S. Federal Reserve rate hike before the end of the year, with a 56% probability of a move by December.
(With inputs from agencies)
