Silver has staged a dramatic recovery, rising to a two-week high despite ongoing challenges from US-Iran tensions. According to Northern Miner, the precious metal started the week on a strong note, demonstrating resilience in the face of fresh setbacks surrounding United States-Iran peace talks. This latest development represents a significant turnaround from the 9% crash that silver experienced in previous sessions, highlighting the volatile nature of precious metals markets.
Indian markets faced additional pressure from domestic policy changes, with the government implementing significant import duty increases on precious metals. As reported by The Financial Express, tariffs on imports of gold and silver were increased to 15% from 6% on May 14, followed by a cap of 100 kg on duty-free import of gold for jewellery exporters. The total duty on import of gold and silver, including tax burden, now stands at 18.46% from 9.18%, comprising a basic customs duty of 10%, 5% agriculture infrastructure and development cess (AIDC), and 3% IGST charge on the duty-inclusive value.
The duty hikes have triggered significant discounts in the physical precious metals market, according to market analysts. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, reported that discounts of nearly 1-2% are being offered in physical markets. As reported by The Financial Express, gold worth ₹1.6 lakh/10 gram is now being offered at ₹1.58 lakh/10 gram in some markets, while one kg of silver, which was trading near ₹2.85 lakh prior to policy measures, is now being sold for nearly ₹2.8 lakh in some markets. Gold and silver ETFs have also been affected by these tightened measures.
The precious metals market has experienced extreme volatility throughout 2026, with both metals hitting record highs and touching all-time lows. According to The Financial Express, spot gold was hovering near the $5,600/oz mark in February, supported by a weakening dollar and safe-haven demand, but fell below the $4,200/oz mark in March, touching its lowest levels since November 2025. Silver faced even more intensified selling pressure, tumbling down to $61/oz in March, down 49% from its February's peak of $120/oz. The US-Iran standoff drove crude oil prices to record-high levels as it crossed the crucial $100/bbl mark, fuelling inflationary concerns and reinforcing expectations of rate hikes by central banks globally.
Despite the current decline, analysts maintain cautious optimism for precious metals recovery. Jateen Trivedi, VP Research Analyst at LKP Securities, noted that profit booking emerged after the steep rally and elevated levels witnessed in recent sessions. For the short term, gold support is seen near ₹1,54,000 while resistance remains around ₹1,62,000. As reported by The Financial Express, for international markets, spot gold needs to hold above the $4,500/oz mark, with resistance found at the 50-day moving average near $4,757, followed by $4,850.
