“On Friday, MCX silver prices dropped sharply by almost 7%, more than ₹16,000 per kilogram in one session.” The steep decline is occurring with rising global volatility brought on by the ongoing US-Iran conflict and shifting investor mood. Market data revealed MCX silver futures fell by one of the largest daily swings in weeks, in line with a prolonged period of erratic movement in precious metals.
The decline is down, in large part, to a stronger US dollar, rising oil prices and diminishing expectations of interest-rate cuts from the US Federal Reserve, analysts say. Globally, silver has come under the squeeze, tumbling with gold even as global geopolitical tensions typically favor safe haven assets.
Investors, say experts, are gravitating more toward the US dollar and higher-yielding assets than non-yielding metals such as silver. Adding to the complexity for the global market is yet another Middle East conflict under way. While any one of these problems inevitably will eventually drive up bullion prices in India and other countries, now it is not going to be the same, as inflation and rising bond yields make metals less attractive.
Silver Rates as Per City (Approximate Retail Prices):
- Delhi: ₹2,30,000 – ₹2,35,000 per kg
- Mumbai: ₹2,28,000 – ₹2,33,000 per kg
- Bengaluru: ₹2,29,000 – ₹2,34,000 per kg
- Chennai: ₹2,32,000 – ₹2,37,000 per kg
- Hyderabad: ₹2,30,000 – ₹2,35,000 per kg
(Note: Prices can vary slightly due to local taxes, making charges and dealer margins.)
Silver, as an industrial metal and as an investment metal, is currently one of the most volatile commodities given its duality, market experts warn. Prices had soared in recent weeks amid geopolitical tensions before experiencing wild corrections.
Analysts expect the price swings to show in silver prices in the future under factors like the course of the US-Iran conflict, price movement of crude oil and central banks interest rate decisions. Investors are wise to keep an eye on commodity markets and refrain from assuming aggressive positions during this time of uncertainty.
