Silver rate today: Silver prices in India remained largely steady but in the red on Tuesday, 19 May, as a weaker US dollar and a decline in crude oil prices supported bullion sentiment after US President Donald Trump paused a planned military attack against Iran to allow room for negotiations.
The possibility of a ceasefire or diplomatic breakthrough between the US and Iran helped ease some inflation concerns that had recently pressured bullion markets and strengthened expectations that interest rates may not remain elevated for an extended period.
In the domestic market, MCX silver rate declined 0.5% to ₹2,75,221 per kg, while MCX gold price rose 0.5% to ₹1,59,899.
In the international market, spot silver slipped marginally by 0.3% to $77.58 per ounce. Spot gold remained largely unchanged at $4,565.40 per ounce as of 0103 GMT after touching its lowest level since March 30 during the previous session. US gold futures for June delivery edged 0.2% higher to $4,567.90.
Among other precious metals, platinum declined 0.2% to $1,976.15 per ounce, while palladium dropped 0.6% to $1,409.75.
Falling dollar and oil prices support bullion sentiment
The US dollar weakened during Asian trade, making dollar-priced bullion more affordable for holders of other currencies and providing support to precious metals prices.
At the same time, oil prices fell more than 2% amid hopes that negotiations could help ease tensions in the Middle East and reduce the risk of supply disruptions. Lower crude oil prices also helped moderate inflation concerns that had recently driven Treasury yields sharply higher.
Trump said on Monday that he had paused a planned attack against Iran after Tehran sent a fresh peace proposal to Washington aimed at ending the ongoing US-Israeli conflict. According to Trump, leaders from Qatar, Saudi Arabia and the United Arab Emirates urged the US to postpone military action as they believed a diplomatic agreement with Iran could still be achieved.
However, reports also indicated that the White House viewed Iran’s latest proposal, delivered through Pakistani mediators, as lacking significant improvement.
Despite the temporary easing in geopolitical tensions, Treasury yields continued hovering near multi-year highs as energy prices remained elevated overall, keeping broader inflation concerns alive.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold and silver because investors can earn better returns from fixed-income instruments.
Still, bullion markets found some support from the softer dollar and improving geopolitical sentiment, even as investors continued monitoring developments in the Middle East and the outlook for US monetary policy closely.
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