Silver prices in India moved up by 3.9% on May 25, 2026, with the price of 1 gm of silver at ₹277 and 1 kg at ₹276,520. According to latest reports, the 10 gm silver rate stands at ₹2,765, reflecting consistent gains across all weight categories. Silver prices are largely influenced by international spot silver rates, US dollar fluctuations, and import duties on silver among other factors. The latest surge aligns with global silver prices, which climbed 3.9% to $78.42 per ounce internationally.
Silver prices are trending upward due to a weak dollar and declining oil prices amid growing optimism over a potential peace deal between the US and Iran. As reported by The Financial Express, a soft dollar makes precious assets like silver less expensive for overseas currency holders, thereby increasing demand. US President Donald Trump announced that a deal with Tehran was 'largely negotiated', adding that the Strait of Hormuz, which transits around one-fifth of global energy flows, could reopen. However, US President Trump said on Sunday he had told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough in the three-month-old war. Oil prices hit two-week lows on Monday on optimism that the US and Iran were moving closer towards a peace deal, even though they remained at odds over key issues.
Market sentiment is being influenced by Federal Reserve policy expectations, with traders currently pricing in no rate cuts by the US Federal Reserve for this year. According to The Financial Express, the majority of market participants expect the central bank to increase rates by a quarter-basis-points later in December. Higher interest rates typically reduce the appeal of non-interest bearing assets like silver. Kevin Warsh was sworn in as chair of the US Federal Reserve on Friday at a pivotal moment for an American economy where surging gasoline prices due to the Iran war are pushing up inflation and eroding consumer sentiment.
The precious metals rally extended beyond silver, with gold rising 1.4% to $4,570.88 per ounce and US gold futures gaining 1.1% to $4,572.90. As per latest reports, platinum rose 1.9% to $1,959.85 and palladium was up 1.9% at $1,373.25. Gold speculators cut net long position by 6,239 contracts to 94,388 in the week to May 19, while gold kept trading at a steep discount in India last week as price volatility dampened demand. The dollar's weakening effect made greenback-priced bullion more affordable for holders of other currencies, supporting the broader precious metals rally.
Silver prices vary across major Indian cities, with Mumbai, Delhi, Pune, and Ahmedabad showing prices at ₹277 per gm. According to latest reports, Bangalore, Chennai, Hyderabad, Kolkata, and Surat also report similar rates, with the price difference primarily attributed to local market dynamics and regional demand patterns. The latest data shows Mumbai, Pune, and Surat maintaining prices at ₹277 per gm with 1 kg rates around ₹276,520. Analysts suggest silver prices may remain range-bound in the near term as markets monitor the prospective peace deal between US and Iran. For cues on silver prices, markets will monitor remarks delivered by new US Fed chair Kevin Warsh, who was sworn in on Friday, and look out for US GDP data and further developments in Middle East negotiations.
