Silver Prices Climb 1.5% To ₹2.82 Lakh Per Kg Amid Hormuz Tensions

Silver prices in India jumped on Tuesday, 12 May, as investors shifted towards safe-haven assets due to rising geopolitical tensions in West Asia, higher crude oil prices and a weaker U.S. dollar.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

On the Multi Commodity Exchange (MCX), silver prices rose 1.5% to ₹2,82,463 per kg. Gold prices on MCX also increased 0.3% to ₹1,54,150 per 10 grams.

In the international market, spot silver gained 0.2% to $86.27 per ounce after rising more than 7% in the previous trading session. Spot gold advanced 0.5% to $4,757.59 per ounce, while U.S. gold futures for June delivery climbed 0.8% to $4,768.20 per ounce.

Among other precious metals, platinum slipped 0.2% to $2,127 per ounce, while palladium declined 0.2% to $1,506.34 per ounce.

Strait Of Hormuz Concerns Push Bullion Higher

The investor mood was still centered on news emanating from the Strait of Hormuz, an important international oil transport channel. The uncertainty of supply disruption led to higher crude oil prices, fueling concerns about inflation in several countries.

The rising price of oil has caused investors to worry about rising manufacturing and logistics costs worldwide. Investors will be keeping an eye out for new U.S. Consumer Price Index data to gauge inflation trends and determine future interest rates.

According to reports, U.S. President Donald Trump described Iran’s response to a recent peace proposal as “a piece of garbage” and said ceasefire efforts were on “massive life support”, adding to uncertainty in global markets.

Markets are also tracking Trump’s upcoming visit to China, where discussions with Chinese President Xi Jinping are expected to focus on trade relations, geopolitical tensions and the Middle East situation.

Weak Dollar Supports Gold And Silver

A weaker U.S. dollar and easing bond yields also supported bullion prices on Tuesday. Precious metals generally become more attractive for overseas buyers when the dollar weakens.

Meanwhile, crude oil prices continued to trade higher during Asian market hours as uncertainty persisted over a possible ceasefire between the U.S. and Iran.

Investors are expected to remain focused on global inflation data, crude oil price movements and geopolitical developments for further direction in gold and silver prices.