Silver Rate Today Jumps ₹11,000 On MCX As Dollar Weakens; Gold Prices Also Rise

Silver prices rose sharply on Tuesday, while gold also moved higher, supported by a weaker U.S. dollar and easing crude oil prices after indications that the conflict involving the United States and Iran could end soon, according to market data.

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On the Multi Commodity Exchange (MCX), silver prices climbed 4.2% or ₹11,179 to ₹2,78,339 per kilogram. Gold prices on MCX also increased by 1.15% or ₹1,850 to ₹1,62,149 per 10 grams. International bullion markets also recorded gains during early trading hours.

Global Precious Metal Prices Rise

Spot silver rose about 3% to $89.60 per ounce, while spot gold increased around 0.8% to $5,179.52 per ounce as of 02:33 GMT, according to Reuters.

U.S. gold futures for April delivery gained 1.7% to $5,188.70 per ounce.

Other precious metals also moved higher in global markets. Spot platinum increased about 1.2% to $2,208.16 per ounce, while palladium edged up about 0.2% to $1,693.84 per ounce.

The gains came as precious metals fell in the prior trading session due to rising energy prices and concerns about inflation.

Weaker Dollar Supports Bullion Prices

A decline in the U.S. dollar supported the rise in bullion prices. A gauge of the U.S. dollar slipped about 0.1%, extending the previous day’s decline. The U.S. dollar had weakened about 0.4% earlier, making dollar-denominated metals cheaper for investors holding other currencies, according to Reuters.

Movements in the dollar index often influence precious metal prices because bullion is typically priced in U.S. dollars in global markets.

Geopolitical Developments Influence Markets

Market sentiment improved after U.S. President Donald Trump indicated that the conflict involving the United States and Iran could be resolved soon.

Geopolitics had earlier disrupted the flow of vessels through the Strait of Hormuz, a key global shipping route that transports about 20% of the world’s oil supply.

This had caused global energy prices to surge in recent sessions. However, crude oil prices have fallen by more than 10% following comments that the conflict may be resolved sooner rather than later.

This fall in crude oil prices has alleviated fears about supply disruptions in global energy markets.
Precious Metals Remain Volatile

Gold and silver prices have recorded fluctuations in recent sessions following geopolitical developments and movements in crude oil prices.

Earlier increases in crude oil prices had raised fears about inflation and the interest rate cuts by the U.S. Federal Reserve.

Recent developments in global markets, including the movements in the U.S. dollar and the prices of energy, have continued to affect the precious metal prices on international as well as domestic trading platforms.