Silver Prices Hit Low Amid US-Iran Tension and Market Volatility
Silver prices saw a nearly 1% drop in futures trade due to heightened US-Iran tensions, which affected investor interest in precious metals. This volatility is linked to geopolitical concerns and expectations of persistent inflationary pressure, influenced by potential shifts in US Federal Reserve policy.
Silver prices saw a downturn, dropping nearly 1% to Rs 2.76 lakh per kilogram in futures trading on Tuesday, as US-Iran tensions resurfaced, affecting investor confidence in precious metals.
The decline on the Multi Commodity Exchange was recorded at Rs 1,346, shrinking by 0.48% to Rs 2,76,965 per kg with a turnover of 7,451 lots. Market volatility followed US President Donald Trump's rejection of Iran's peace proposal, rekindling worries about stability in the critical Strait of Hormuz.
Globally, Comex silver futures for July slipped 1.24% to USD 84.88 per ounce. Analysts highlighted that persistent West Asia tensions could sustain high crude prices, elevating inflation and prompting tighter monetary policy from the US Federal Reserve, as markets eye upcoming US-China talks and inflation data.
(With inputs from agencies.)
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