Silver prices jump nearly ₹7,000 as US-Iran tensions ease
What's the story
Silver prices witnessed a massive surge on Friday, rising by ₹6,911 to ₹2.26 lakh per kilogram in futures trade. The spike comes as investors flocked back to the market after a temporary easing of tensions between the US and Iran. On the Multi Commodity Exchange (MCX), silver for May delivery jumped by 3.14% to ₹2,26,785 per kg.
Market fluctuations
Silver witnessed a major fall in previous session
In the previous session, silver futures had witnessed a major fall of ₹14,960 or 6.37% to close at ₹2,19,874 per kg. The commodity markets were closed for the morning session due to Ram Navami but resumed trading in the evening on Thursday. In the international market, May contract silver futures rose by $2.02 or 3% to $69.96 per ounce on Comex exchange.
Diplomatic impact
Trump's temporary military strike suspension boosts silver prices
The recent spike in silver prices is largely attributed to US President Donald Trump's decision to suspend military strikes on Iran's energy infrastructure for 10 days. This move has opened a window for diplomacy between Washington and Tehran, analysts say. However, Trump's threat of stronger military action after Iran rejected peace talks has limited the upside potential of this precious metal.
Market volatility
US-Iran negotiations remain volatile, keeping markets on edge
Negotiations between the US and Iran remain fragile as the latter has rejected Washington's 15-point peace proposal while demanding recognition over the Strait of Hormuz. This has kept markets volatile. Renisha Chainani, Head of Research at Augmont, noted that while prolonged conflict raises inflation risks, it also increases the probability of an economic slowdown in the US, creating a mixed outlook for bullion.