Silver Price ͏Surges 2% to ₹2,61,457͏ Ami͏d Cru͏de Oil Supply͏ Relief͏

Mumbai͏, Mar͏ch 17: Silver pr͏ic͏es jumped ͏sharply on T͏uesday a͏s easing c͏oncerns ove͏r disruptions i͏n crude o͏i͏l shipment͏s sup͏ported͏ the market.͏ MCX si͏lv͏er M͏ay futu͏res ͏rose 2% ͏t͏o ͏₹2,61,457 ͏per kilogram, whil͏e in͏ternational spot silver͏ g͏ained ͏0.6% t͏o $81.2͏8͏ p͏er͏ ounce, reflec͏ting rene͏wed safe-haven interest ͏ami͏d ongoi͏ng͏ ͏Middle East tensio͏ns.

MCX Silver Gains 2% ͏As Oil Shi͏pment ͏Risks͏ Eas͏e͏

Silver futures on the Multi Commodity͏ Exchange (͏MCX) ros͏e from previous session lows, rec͏o͏vering from ₹2,56,532 pe͏r ͏kilogra͏m, wi͏th a 2͏% increase to ₹2,6͏1,457 pe͏r ͏kilogram in͏ early deals. The rise͏ coincided with dimin͏ishi͏ng fears over prol͏onged s͏upply d͏isruptions in the ͏Strait of͏ Horm͏uz, where Iranian drone͏ activity and re͏gi͏onal con͏flic͏ts had temporarily͏ hindered oil͏ tra͏nsp͏o͏rt. This easing of supply constraints restored a m͏ea͏sure of market͏ confiden͏ce in͏ ͏precious metals trading.

In͏te͏rnational ͏Silver Shows Mode͏s͏t Gains Amid Dollar Volatility

Globally, spot silver advanced 0.6% to $81.28 per ounce, while US silver futures for April delivery gained 0.5% to $81.45 per ounce. The US dollar index slipped approximately 0.6%, offering support for precious metals denominated in other currencies. While geopolitical tensions continue in the US-Iran-Israel conflict zone, weaker dollar flows have partially offset inflation concerns, allowing silver prices to register measurable gains without overextending.

Middle East Tensions Keep Supply Concerns Alive

Despite the temporary relief in shipment disruptions, the US-Iran conflict remains in its third week, sustaining elevated crude prices above $105 per barrel. Iranian drone strikes have affected operations in Dubai, temporarily shutting down the airport and damaging a key oil facility in the United Arab Emirates. US President Donald Trump reiterated calls for international support to secure the Strait of Hormuz, highlighting the vulnerability of global energy supplies and maintaining pressure on commodity markets.

Rising Oil Prices Continue to Influence Silver Demand

Crude oil prices, despite some easing in shipment concerns, remain elevated due to limited shipping access through the Persian Gulf. Higher oil prices fuel global inflationary expectations, which in turn impact central bank decisions and the relative attractiveness of yield-bearing assets compared with non-yielding metals like silver. Investors have kept a close eye on monetary policy announcements across major economies, contributing to a cautious but upward trend in silver prices.

Central Bank Policy Focus Adds Volatility to Silver

The US Federal Reserve is widely expected to maintain interest rates unchanged for the second consecutive meeting, while other central banks, including those in the UK, euro zone, Japan, Australia, Canada, Switzerland, and Sweden, will release policy decisions this week. The anticipation of stable rates amid high inflation pressures has heightened market focus on safe-haven metals. Silver has benefited from this environment, showing a 2% rise on MCX while remaining sensitive to future policy signals.

Domestic Silver Prices Reflect Global Trends

In India, domestic silver prices showed modest increases, aligning with international gains. Mumbai reported ₹2,61,457 per kilogram, while Delhi and Kolkata recorded ₹2,61,400 per kilogram. The slight variation across cities reflects local market factors such as transportation costs, taxation, and regional demand. Silver’s performance contrasts with gold, which rose modestly but saw smaller intraday fluctuations, highlighting silver’s relative sensitivity to oil price and geopolitical developments.

Profit Booking and Technical Factors Influence Silver Movements

Following recent gains, some traders have engaged in profit booking, limiting sharp upward swings in silver prices. After a period of heightened volatility in February and early March, silver’s recovery in the current week reflects a balance between easing oil shipment fears and broader macroeconomic uncertainties. Technical corrections have complemented the broader market response, preventing the metal from exceeding key resistance levels despite supportive fundamentals.

International Silver Markets Monitor Geopolitical Developments Closely

Markets globally remain attentive to developments in the US-Israel-Iran conflict, particularly regarding maritime routes and energy infrastructure. The Strait of Hormuz continues to operate partially, with some vessels navigating successfully despite regional threats. This has contributed to the 2% rally in silver, as investors reassess risk amid temporary easing of supply constraints. Meanwhile, continued military operations in Iran and Israel ensure that commodity prices retain sensitivity to geopolitical developments.

Silver Prices Continue Within Defined Range Amid Volatility

Despite short-term gains, silver remains in a defined trading range, reflecting the combined influence of central bank policies, oil prices, and geopolitical events. Spot silver at $81.28 per ounce indicates a modest global recovery, while domestic rates approaching ₹2,61,457 per kilogram show measured but positive movement. Volatility is expected to persist in the near term, driven by updates from both Middle East tensions and central bank communications across major economies.

Silver prices have risen amid easing crude oil shipment disruptions, elevated global oil prices, and ongoing geopolitical tensions in the Middle East. The market remains sensitive to central bank policy announcements and macroeconomic developments, with prices reflecting both risk mitigation and technical factors within a controlled range.