Silver Rates Drop Rs 50 on Tuesday as Tensions Between US and Iran Thaw

Mumbai: Silver prices in India today dropped Rs 50 on Tuesday to Rs 2,350 per 10 grams or Rs 235 per gram and Rs 2,35,000 per kilogram. This comes after rates on Monday had recovered by Rs 50 from Friday’s closing levels. Silver surged to Rs 2,400 per 10 grams on Monday due to fresh safe-haven demand. However, today’s fall wiped out the entire previous gains and took domestic rates back to levels last seen on Friday

Silver surged to Rs 2,400 per 10 grams on Monday due to fresh safe-haven demand, however, today’s fall wiped out the entire previous gains and took domestic rates back to levels last seen on Friday. Rates slumped tracking weakness in global markets, with gold too ruling lower on the day as hopes of Iran and US de-escalating geopolitical tensions dented demand for safe-haven assets. Dealers said gold and silver rates fell together as both precious metals had surged together on Monday tracking increased Iran-US tensions.  

However, prices came under pressure today as the truce between US and Iran continued into its second day, ending fears of military confrontation which had pushed up bullion prices through the weekend. Traders said silver is also highly susceptible to geopolitical news from West Asia and Tuesday’s fall was likely profit booking by investors from positions they had taken during the spike in Iran-US tensions.  

Prices had traded between Rs 2,350 and Rs 2,450 for a major part of last week as demand from electronics and solar photovoltaic industry provided some support, even as geopolitical risk premium petered out of prices. Traders added that if Iran and US tensions flare up again then prices could easily revisit Tuesday’s low while sustained calm between the two countries could see prices slide further. However consumers should also account for making charges and 3 per cent GST charged by retailers along with applicable state taxes while working out the final cost of purchases.  

Prices fell uniformly across all surveyed Indian cities today, with all ten centres recording a fall of Rs 50 on Tuesday. Chennai, Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Kerala, Pune, Vadodara and Ahmedabad all traded Rs 2,350 per 10 grams today, lower from Rs 2,400 they ruled at on Monday. This is in contrast to prices on Monday when Chennai, Hyderabad and Kerala remained at Rs 2,400 while all other seven cities rose Rs 50 each to Rs 2,450.  

With today’s cut every city has fallen in line with each other’s rate, after trading at a premium in some cities earlier this week. Dealers also said that synchronised movement across all Indian cities reinforces the point that domestic silver rates moves in tandem with international bullion prices closely and don’t stay misaligned for long.  

Gold rates too fell on Tuesday  

Gold rates in India too continued its fall on Tuesday discounting across all popular purity levels as Iran-US ceasefire remained intact through Monday. At 1130 am, the national average gold rates were Rs 1,44,170 for 24 karat gold, Rs 1,32,150 for 22 karat gold (per 10 grams) and Rs 1,08,130 for 18 karat gold (per 10 grams), down Rs 750, Rs 690 and Rs 560 respectively over Monday’s prices.  

The yellow metal further slid after hitting lifetime highs last Wednesday and has fallen over Rs 2,000 cumulatively across the three popular purity levels since then. Dollar index trading slightly higher also weighed on gold prices today. Dealers said any strong Iranian reaction to any future US move could see a swift return of safe-haven demand for gold and silver.  

10 Gram Silver Rates Across Major Indian Cities — Tuesday vs Monday