Silver Stops Flatlining, Rises Rs 50 on Wednesday

Mumbai, Aug 5: Silver prices in India moved higher on Wednesday, breaking a six-session streak of unchanged trading as fresh buying interest returned to the bullion market. 

The national rate for silver stood at Rs 2,400 per 10 grams on Wednesday, translating to Rs 240 per gram and Rs 2,40,000 per kilogram. This marks a gain of Rs 50 from Tuesday’s national rate of Rs 2,350 per 10 grams, snapping a run in which the metal had failed to move in either direction since the back half of last week. The move takes silver back to the Rs 2,400 per 10 grams level it had briefly touched at the start of last week, when a flare-up in Iran-US tensions had triggered a short burst of safe-haven buying. 

Bullion dealers said Wednesday’s uptick reflects renewed safe-haven demand, coinciding with a similar rebound in gold prices, as investors once again sought shelter in precious metals amid fresh uncertainty over the Iran-US standoff. Demand from the electronics and solar photovoltaic sectors has continued to offer underlying support as well, dealers said, even as the broader move higher was driven primarily by investment demand rather than any shift in industrial offtake. Import volumes through major ports were said to be picking up modestly, an early sign that downstream jewellery and industrial buyers may be starting to build fresh positions after the recent lull. 

Traders said silver’s near-term direction will continue to hinge on how the Iran-US situation evolves, with contradictory signals from Washington and Tehran over the state of talks keeping the market on edge. A durable de-escalation from here could see silver drift back toward its recent flat levels, while any fresh flare-up in the region could extend Wednesday’s gains further. For now, dealers said, the metal’s move higher underscores just how quickly sentiment can shift once a fresh catalyst emerges. 

City-Wise Comparison: Wednesday vs Tuesday 

City-wise silver rates moved uniformly higher on Wednesday compared with Tuesday’s levels, with the gain spread evenly across every centre surveyed. Chennai, Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Kerala, Pune, Vadodara and Ahmedabad all traded at Rs 2,400 per 10 grams on Wednesday, up Rs 50 from their Tuesday rate of Rs 2,350 in every city. All ten cities in the survey have moved in perfect lockstep, underscoring how closely domestic silver prices track a single national benchmark, with local dealer premiums, which typically reflect transport costs and regional demand, staying negligible even as the broader market moved higher on the day. 

Gold Prices Today 

Gold prices, meanwhile, rebounded sharply on Wednesday after two straight sessions of losses. The national rate for gold stood at Rs 1,45,750 for 24 karat gold, Rs 1,33,600 for 22 karat gold, and Rs 1,09,310 for 18 karat gold per 10 grams on Wednesday morning, a sharp gain of Rs 1,750, Rs 1,600 and Rs 1,310, respectively, from Tuesday’s levels of Rs 1,44,000, Rs 1,32,000 and Rs 1,08,000 per 10 grams. Dealers attributed the rebound to a fresh bout of safe-haven buying as contradictory signals from Washington and Tehran clouded the outlook for a resolution to the Iran-US standoff. The move mirrors Wednesday’s uptick in silver, with both metals drawing support from the same wave of renewed investor caution. 

As always, buyers and sellers are advised to confirm live rates through the day before transacting, since silver can move meaningfully within a single session depending on global cues. On top of the quoted bullion rates, buyers should also factor in making charges and the applicable 3 per cent GST, along with any state-level local taxes, all of which get built into the final billed price at jewellery counters across the country. 

Analysts said Wednesday’s move shows how sensitive silver remains to swings in the Iran-US standoff, even after a prolonged stretch of flat trading suggested the market had settled into equilibrium. Most market watchers expect near-term moves to stay closely tied to the geopolitical backdrop, with any further escalation likely to keep both gold and silver well supported. Industrial buyers, meanwhile, are expected to keep a close eye on prices in the coming sessions, given how quickly the metal can reverse course. Silver’s performance this year has still outpaced many other asset classes, and Wednesday’s bounce keeps that broader uptrend intact even after the recent pause. Dealers added that the coming days could bring further volatility, with the metal’s dual role as both an industrial commodity and a safe-haven asset likely to keep it reacting sharply to any fresh headlines out of the Middle East. 

Investors looking to diversify beyond physical silver can also explore the list of Silver ETFs in India: https://hdfcsky.com/etf/silver-etf 

10 Gram Silver Rates: Wednesday vs Tuesday 

Source

•  goodreturns.in