Silver prices in India fell 0.5% to ₹2,73,266 per kg on Friday, marking a reversal from the previous surge to ₹2,85,000 per kg. According to LiveMint, this decline came amid a stronger U.S. dollar and rising oil prices that dampened investor sentiment. Despite the daily decline, silver was still headed for a weekly gain of around 0.4%, outperforming gold during the week. On MCX, silver price fell 0.5% to ₹2,73,266 per kg while MCX Gold also declined 0.5% to ₹1,58,816 per 10 grams.
The precious metals market remained volatile as traders reacted to a stronger U.S. dollar and rising Treasury yields. As reported by LiveMint, the dollar hovered near a six-week high, making dollar-priced commodities more expensive for holders of other currencies and limiting buying interest in silver and gold. Spot silver fell 0.7% to $76.18 per ounce by 0222 GMT, reflecting the global pressure on precious metals. The dollar strength created headwinds for silver prices across international markets, with investors increasingly priced in the possibility of another interest rate hike by the U.S. Federal Reserve later this year.
Silver also came under pressure from rising bond yields as investors increasingly priced in the possibility of another interest rate hike by the U.S. Federal Reserve later this year. Higher interest rates generally reduce the appeal of non-yielding assets like silver and gold because investors tend to shift toward interest-bearing instruments. According to LiveMint, investors were on edge amid persistent inflation concerns and expectations of further monetary tightening by the U.S. Federal Reserve, creating additional headwinds for precious metals.
Despite the decline, heightened geopolitical tensions surrounding U.S.-Iran negotiations kept market sentiment cautious, supporting safe-haven demand for precious metals. As reported by LiveMint, concerns over inflation and geopolitical tensions continued to influence market dynamics, though the overall sentiment remained cautious. The combination of geopolitical uncertainties and monetary policy expectations created a complex environment for precious metals trading, with investors seeking refuge in traditional safe-haven assets.
