Silver Surges Amid West Asia Tensions: Geopolitical Factors Drive Market Fluctuations

Silver prices climbed by Rs 1,500 to Rs 2.76 lakh per kg in the national capital due to global trends and West Asia crisis. Meanwhile, gold saw a decline of Rs 400. Analysts noted geopolitical impact on metal prices, alongside economic signals affecting market dynamics in the US and abroad.

Silver prices surged by Rs 1,500, or 0.54%, reaching Rs 2.76 lakh per kilogram in the national capital on Thursday, driven by firm global trends and the escalating crisis in West Asia. The All India Sarafa Association reported that silver climbed to Rs 2,76,500 per kilogram after closing at Rs 2,75,000 on the previous day.

In contrast, gold prices dipped by Rs 400 to Rs 1,65,200 per 10 grams. Analysts highlighted the diverging directions of the two metals amid investor concerns over geopolitical tensions and economic signals from the US, noting a firmer dollar and inflation worries as contributors to gold's minor decline.

International markets saw spot silver gain USD 1.25 to USD 86.99 per ounce, with gold trading slightly higher at USD 5,178.45 per ounce. Experts pointed to geopolitical risks, such as Iran's warnings of potential crude oil price surges, and sustained price pressures as factors influencing the outlook for precious metals.

(With inputs from agencies.)