Silver rate today: Silver price in India staged a recovery on Thursday after slipping to a one-month low in the previous session, as a softer U.S. dollar provided support to precious metals. However, elevated crude oil prices continued to fuel concerns about persistent inflation, which could keep interest rates higher for longer and limit upside in bullion.
MCX Silver prices advanced around 1% to ₹2,35,102 per kg, while MCX gold was flat, up 0.3% at ₹1,49,526 per 10 grams.
Spot silver rose 1% to $72.18 per ounce, rebounding from recent weakness. Other precious metals also saw gains, with platinum rising 1.7% to $1,911 and palladium advancing 0.9% to $1,470.40. Gold followed suit, with spot prices up 0.6% at $4,566.73 per ounce as of 0105 GMT, after hitting their lowest level since March 31 in the previous session. U.S. gold futures for June delivery climbed 0.4% to $4,578.50.
Why did precious metal prices rise today?
The decline in the U.S. dollar played a key role in supporting bullion prices, as a weaker greenback makes dollar-denominated metals cheaper for holders of other currencies, thereby boosting demand. This currency effect often acts as a short-term catalyst for metals like silver and gold, especially during periods of macroeconomic uncertainty.
However, the broader macro backdrop remains complex. Brent crude oil hovered above $119 per barrel, staying near its highest levels since June 2022. The surge in oil prices has been driven by escalating geopolitical tensions, particularly stalled negotiations between the United States and Iran. Concerns over prolonged supply disruptions in the Middle East have added upward pressure to crude markets.
U.S. President Donald Trump indicated that the United States would continue a naval blockade of Iranian ports in an effort to curb Tehran’s oil exports and push it back to negotiations. Reports also suggested that Trump discussed strategies with oil companies to mitigate the impact of a potentially prolonged blockade, while urging Iran to reach an agreement swiftly.
From an investor standpoint, higher oil prices translate into renewed inflation risks. This complicates the outlook for interest rates, as central banks may be forced to maintain tighter monetary policy for longer to contain price pressures.
The U.S. Federal Reserve recently held interest rates steady, but the decision reflected growing internal divisions. In its most split outcome since 1992, the central bank flagged increasing concerns about inflation, with three officials dissenting against the current policy stance. This signals uncertainty over the future path of rate cuts, a key driver for precious metals.
Adding another layer of uncertainty, Kevin Warsh, seen as Trump’s preferred candidate to lead the Fed, cleared an important procedural step, potentially paving the way for him to succeed Jerome Powell next month.
For investors, the near-term outlook for silver remains a balancing act between supportive factors like dollar weakness and safe-haven demand, and headwinds such as elevated oil prices and a potentially prolonged high-interest-rate environment.
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