Silver Rates Steady on Wednesday After Tuesday’s Rs 50 Fall as Middle East Boils

Mumbai: Silver prices in India held steady on Wednesday at Rs 2,350 per 10 grams, or Rs 235 per gram, unchanged from Tuesday’s level, after the metal had slumped Rs 50 the previous day as tensions between the US and Iran escalated. The national average rate has now stabilised at the lower band seen since Tuesday, with the metal showing little fresh movement even as the broader Iran-US narrative continues to evolve through the week. Tuesday’s fall had wiped out the entire gains silver had notched on Monday, when the metal surged to Rs 2,400 per 10 grams on fresh safe-haven demand triggered by escalating Iran-US tensions. That spike proved short-lived, however, as the truce between Washington and Tehran extended into a second day on Tuesday, prompting profit-booking by investors who had built positions during the earlier flare-up. With Wednesday’s rates holding flat at Tuesday’s level, silver appears to have found a temporary floor after the sharp swings of the past week.

Tuesday’s fall had wiped out the entire gains silver had notched on Monday, when the metal surged to Rs 2,400 per 10 grams on fresh safe-haven demand triggered by escalating Iran-US tensions. That spike proved short-lived, however, as the truce between Washington and Tehran extended into a second day on Tuesday, prompting profit-booking by investors who had built positions during the earlier flare-up. With Wednesday’s rates holding flat at Tuesday’s level, silver appears to have found a temporary floor after the sharp swings of the past week, even as traders caution that any renewed escalation in West Asia could quickly reignite safe-haven buying. 

Across major Indian cities, Wednesday’s rates were largely unchanged from Tuesday’s uniform pricing of Rs 2,350 per 10 grams. Chennai, Mumbai, Delhi, Bangalore, Hyderabad, Kerala, Pune, Vadodara and Ahmedabad all continued to trade at Rs 2,350 per 10 grams on Wednesday, matching Tuesday’s levels exactly. Kolkata was the lone exception, slipping marginally to Rs 2,349 per 10 grams from Rs 2,350 on Tuesday, a difference of just Rs 1. The near-total absence of city-wise divergence reinforces dealers’ earlier observation that domestic silver rates move in close alignment with international bullion prices and rarely stay misaligned across centres for long. This contrasts with the pattern seen through last week, when cities such as Chennai, Hyderabad and Kerala had briefly traded at a discount to the rest of the country before falling in line. 

Gold rates in India extended their decline for a second straight session on Wednesday, with national average rates slipping further across all popular purities. As of Wednesday, national average gold rates stood at Rs 1,43,510 for 24 karat gold, Rs 1,31,550 per 10 grams for 22 karat gold, and Rs 1,07,630 per 10 grams for 18 karat gold, down Rs 660, Rs 600 and Rs 500 respectively from Tuesday’s levels. The yellow metal has now shed more than Rs 1,400 across 24K rates over the past two sessions, extending a downward trajectory that began after prices touched record highs last week. Gold’s continued softness came even as fresh flare-ups, including intercepted Iranian missiles aimed at American forces in the region, kept the situation tense through Tuesday, though the fragile Iran-US pause has largely held. 

Dealers attributed the steadiness in silver to a broader shift in risk sentiment, with equity markets rallying sharply at Wednesday’s open, the Sensex and Nifty both trading higher and Asian and US markets broadly positive overnight. That firmer risk appetite has drawn some investor interest away from safe-haven assets and into equities, dealers said, a pattern also weighing on gold through the session. A rebound in crude oil prices, which recouped much of Tuesday’s sharp losses, and a steady dollar index added to the pressure on bullion, with silver and gold moving in step this week even as oil has diverged somewhat from the precious metals narrative. 

Prices had traded between Rs 2,350 and Rs 2,450 for a major part of last week, with demand from the electronics and solar photovoltaic industry lending some support even as the geopolitical risk premium petered out. Traders said that if Iran-US tensions flare up again, silver could easily revisit levels seen earlier in the week, while sustained calm between the two countries could see prices slide further still. Consumers were advised to factor in making charges and the 3 per cent GST levied by retailers, along with applicable state taxes, while calculating the final cost of purchases. 

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