Silver Market Under Pressure Amid Geopolitical Tensions

Silver prices dropped by Rs 1,854 to Rs 2.39 lakh per kg in futures trade due to weak global trends amid geopolitical tensions in West Asia. The international market saw silver futures for May decline almost 1%. Uncertainties and volatile markets are likely to keep silver prices fluctuating.

Silver prices have witnessed a significant drop, breaking a three-day winning streak by plummeting Rs 1,854 to Rs 2.39 lakh per kilogram in futures trade. The decline is attributed to weak global trends tied to ongoing geopolitical tensions in West Asia.

On the Multi Commodity Exchange, silver for May delivery declined 0.77%, further impacted in the international market where May contracts slipped nearly 1% at USD 74.25 per ounce. Analysts highlight silver's steep monthly sell-off of over 20% in March—the sharpest since 2011—and a current valuation nearly 40% below January's peaks.

Jigar Trivedi of IndusInd Securities attributes these movements to inflation concerns and energy market disruptions, prompting a hawkish stance by investors and central banks. Despite hopes of reduced tensions after statements from global leaders, the situation escalated following conflicts impacting LNG transportation, adding further pressure to volatile silver markets.

(With inputs from agencies.)