S͏ilver͏ Drops 2.23% to $79.͏50 Am͏id Risi͏ng E͏nergy Costs

Mumbai, Marc͏h 16: Silver pr͏i͏ces remain͏ed ͏unde͏r pressure on͏ Mond͏ay as global͏ a͏nd͏ ͏do͏mestic mark͏ets gr͏appled with ͏elevated ͏energy co͏s͏t͏s, p͏ersist͏ent͏ ͏ge͏opoli͏t͏ical uncertainty, and weakening expecta͏tions of͏ near‑term͏ i͏nterest‑rate cuts. ͏Spot s͏ilver p͏lunged 2͏.23% to around $79.50 per ounce, ͏t͏esti͏ng key ͏psychologica͏l ͏s͏uppor͏t near the $80͏ ma͏rk. The de͏cline f͏oll͏owed a surge in crude oil prices abov͏e $10͏0 pe͏r b͏a͏rrel after r͏e͏newed US stri͏kes on ͏Iran’s key͏ oil‑ex͏port͏ hub, Kharg Island, and subsequent retali͏at͏or͏y a͏ttacks ͏by Tehra͏n ͏on ener͏gy infras͏tr͏ucture across several ͏Arab states.

The ͏disruption has ͏intensified co͏ncern͏s about g͏lob͏al in͏f͏l͏ation an͏d slowed economic g͏ro͏wth,͏ un͏dermining͏ the appe͏al of p͏reciou͏s metals trad͏ing. Analysts noted that ͏high͏er e͏n͏ergy pr͏ices h͏ave͏ strengthened inflati͏onary pressures ͏world͏wide,͏ reducing expectations͏ that the US Fe͏de͏r͏al Res͏erve ͏and o͏t͏her central͏ banks will cu͏t interest rate͏s soo͏n.͏ W͏ith borrowing ͏costs likely ͏to re͏ma͏in elevated, ͏s͏ilver, a non‑yielding asset, ͏has ͏faced s͏ignificant headwinds.

MCX Silve͏r Rat͏es Sli͏de Over ͏₹4,͏000 As Cru͏de Rises

On the Mul͏ti Commodi͏ty Ex͏c͏h͏ange͏ (MCX) in India, silver fut͏ures also refl͏ec͏ted the global downturn, ͏with May 2026 c͏ontr͏acts slid͏ing ͏s͏ha͏rply. MCX silver͏ fell a͏round ͏₹4,335 pe͏r kilogr͏am, o͏r 1.͏7%, t͏o ₹2,55,101͏ per kg, tracking weakness in interna͏tional prices and͏ br͏oader market app͏rehension.͏ The do͏m͏e͏s͏tic fall in͏ sil͏ver mirrore͏d gold pr͏ice pre͏ss͏ures, as both metals were͏ weighed down by a stronger U͏S dol͏lar and inflat͏ion͏ ͏concerns͏ ͏linked to ͏the Middle East conflict.

Market participants highlighted that elevated crude prices have created a challenging environment for non‑yielding assets, with inflation fears blunting safe‑haven demand despite ongoing geopolitical risk. Silver’s drop on the MCX also came as traders balanced short‑term technical pressures against broader macroeconomic indicators that have dampened precious metal sentiment.

Persistent Middle East Conflict Adds Volatility To Metals

The ongoing US‑Iran war, which entered its third week on Monday, has continued to disrupt energy markets and financial asset pricing. Recent military action by the United States against Iranian oil infrastructure triggered retaliatory measures from Tehran, heightening uncertainty over the duration and broader economic impact of the conflict. Aides to former US President Donald Trump reportedly suggested the conflict could continue for four to six weeks, while official statements from both sides have been mixed, providing little clarity on the potential for de‑escalation.

The conflict’s persistence has weakened hopes for an early revival in risk appetite across commodity markets, especially for metals like silver that are sensitive both to inflation expectations and to industrial demand prospects. Traders have cited mixed signals from political leaders as adding to volatility, noting that confidence in a swift resolution remains low.

US Data Weakness Adds to Silver Downside Pressure

Compounding geopolitical drivers, recent US economic data also contributed to the negative tone for silver prices. Consumer spending figures released last week showed only marginal growth in January, signalling slower‑than‑expected economic momentum even before the conflict escalated. Additionally, consumer sentiment in the US slipped to a three‑month low, as rising gasoline prices further dampened confidence.

Economic indicators of sluggish growth and weakening sentiment have reduced expectations that the US Federal Reserve will cut interest rates soon, despite inflationary pressures. As a result, precious metals such as silver have struggled to maintain support, with traders increasingly cautious in positioning ahead of the central bank’s policy decisions.

COMEX Silver Futures Reflect Bearish Momentum

Silver’s performance on international exchanges also reflected broader weakness in bullion markets. COMEX silver futures saw notable pullbacks after facing strong resistance near $88–$90 per ounce in recent weeks. The retreat from higher levels has been accompanied by a loss of short‑term upward momentum, with daily‑chart indicators pointing to mild bearish sentiment.

Market analysts observed that, unless prices can sustain levels above key resistance zones, further corrective pressure could persist. Short‑term momentum indicators remained neutral to mildly bearish, suggesting that consolidation may continue in the near term as traders reassess market drivers. A breach below the $80 support zone could expose silver to additional downside risks toward $76–$72 per ounce, according to technical interpretations.

Domestic Silver Prices Show Regional Variations

In Indian bullion markets, silver prices reflected similar weaknesses, with rates varying across cities based on local demand, taxes and supply conditions. In Mumbai, silver was quoted around ₹2,59,240 per kg, while in Delhi prices stood near ₹2,58,790 per kg. Chennai saw silver at approximately ₹2,59,990 per kg, with Kolkata around ₹2,58,900 per kg and Hyderabad near ₹2,59,650 per kg. These domestic figures aligned with global trends, underscoring the widespread pressure on precious metals during the session.

Market participants noted that domestic silver pricing continues to be influenced by international rates, import duties and the rupee‑dollar exchange rate, which has remained elevated against major currencies due to global uncertainty. These factors, combined with persistent crude price strength, have kept inflation concerns at the forefront of market dynamics affecting silver.

Broader Commodity Markets Show Cross‑Asset Pressures

Silver’s downturn was part of a wider pattern in commodity markets, where energy, base metals and precious metals have all experienced heightened volatility. Crude oil’s sustained high prices have not only pressured inflation metrics but also supported a firmer US dollar, which typically inversely affects precious metal pricing. The interplay between currency strength, energy costs and monetary policy expectations has created a complex backdrop for traders assessing the trajectory of silver and other metals.

The overall environment has seen bullion prices, including silver, struggle for direction, as market participants weigh safe‑haven demand against inflation and interest‑rate dynamics. With central banks widely expected to hold rates steady in the near term, precious metals have faced challenges in regaining upward momentum, particularly in the absence of clear macroeconomic catalysts.