Silver Rate Jumps Over 2% in India Amid Weaker Dollar, Bargain Buying
New Delhi – Silver prices in India surged by 2.3% on March 27, reaching ₹2,25,014 per kilogram, fueled by a weaker dollar and renewed bargain buying. Gold also saw a modest rise, increasing by 1% to ₹1,40,900 per 10 grams.Precious Metals React to Geopolitical Tensions and Economic Concerns
The rally in both silver and gold was supported by a softer U.S. dollar, making dollar-denominated commodities more accessible to buyers using other currencies. Analysts attribute the uptick to bargain hunting following recent price declines.On the MCX (Multi Commodity Exchange) of India, silver prices jumped 2.3% to a day’s high of ₹2,25,014 per kilogram, while MCX gold rates advanced 1% to an intra-day high of ₹1,40,900 per 10 grams.
International markets mirrored the trend, with Spot silver climbing 1.1% to $68.80 per ounce and Spot gold rising 1.1% to $4,428.30 per ounce as of 0228 GMT. Despite these gains, gold has experienced a decline of approximately 1.3% this week. U.S. gold futures for April delivery also increased 1.1% to $4,423.40.
Platinum and palladium also witnessed strong performance, with platinum rising 2.1% to $1,865.13 and palladium gaining 2.7% to $1,389.80.
Geopolitical Uncertainty and Inflation Remain Key Drivers
Geopolitical developments continue to influence market sentiment. Recent indications from U.S. President Donald Trump regarding a potential pause in strikes against Iran’s energy infrastructure, coupled with a rejection of the proposal by an Iranian official, highlight ongoing uncertainty.Furthermore, rising energy prices, particularly Brent crude trading above $105 per barrel due to disruptions in the Strait of Hormuz, are intensifying inflationary pressures globally. While gold is traditionally viewed as an inflation hedge, the current environment presents a challenge, with higher inflation expectations leading to anticipated tighter monetary policy and elevated interest rates. Higher interest rates typically reduce the appeal of non-yielding assets such as gold and silver.
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