Silver prices plunge as strong dollar and Iran tensions weigh on metals

Silver prices tumbled sharply in futures trading on Thursday, retreating after a brief rally as renewed geopolitical tensions and a strengthening US dollar weighed on precious metals.

On the Multi Commodity Exchange (MCX), silver futures dropped by Rs 14,301, or nearly 5.9 per cent, to Rs 2.29 lakh per kilogramme, snapping a four-session gaining streak.

The decline followed fresh signals from US President Donald Trump indicating that the conflict in West Asia could intensify, with no clear timeline for its conclusion. His remarks boosted the US dollar, which has increasingly been viewed as a safe-haven asset in times of uncertainty, thereby exerting pressure on dollar-denominated commodities such as silver.

In global markets, silver futures for May delivery also fell steeply, losing more than 6 per cent to trade at around $71.16 per ounce, ending a similar four-day upward trend.

Analysts said the rise in oil prices after Trump’s address has added to inflation concerns, potentially keeping interest rates higher for longer. This environment tends to reduce the attractiveness of non-yielding assets like precious metals.

Investor sentiment has remained highly sensitive to developments in the Iran conflict, with markets reacting quickly to shifts in political messaging and perceived escalation risks.

Looking ahead, traders are closely monitoring upcoming US employment data, which could offer further clues on the Federal Reserve’s monetary policy path. Expectations have already shifted significantly, with many investors no longer anticipating interest rate cuts in 2026, in contrast to earlier projections before the conflict intensified.

Meanwhile, domestic commodity markets will remain closed on Friday on account of Good Friday, potentially limiting immediate trading activity.

With PTI inputs