Silver Prices, April 8: Price Rally ₹10k per Kg as Markets React to US-Iran War Deal 

Mumbai, April 8: Indian silver prices jumped in a big way on Wednesday, as bullion rates across the country rallied to hit new monthly peaks. Data available with Goodreturns.in shows silver rallied ₹10 per gram on Wednesday to take the national price to ₹260 per gram or ₹2,60,000 per kilogram.

Markets, which were consolidating earlier in the week with tepid volumes, have seen a sharp reversal in their view on industrial commodities over the past few hours, with sudden risk-on trade upending the white metal. Silver prices have, in fact, rallied by ₹10,000 per kilogram in a single trading session on Wednesday, underscoring its extreme volatility under current global trade dynamics.

Ceasefire Pushes Silver Prices

The deal for a ceasefire in place of a looming full-blown war, between US forces and Iran-backed insurgents in the Persian Gulf region, means the economic situation, which was all set to freeze up after a sustained period of acute military preparedness, will begin to recalibrate as markets reprice the risk of a direct military conflagration between the world’s two largest economies.

Tuesday’s silver price, meanwhile, was just at ₹250 per gram, with a single-day gap-up of ₹10 per gram on Wednesday taking the rate to ₹2,60,000. Although there was little change in sentiment among investors as of Tuesday evening after news about mounting tensions in the Middle East, it now appears that appetite for precious metals, both as a hedge and as an industrial metal, has returned with a vengeance and at the cost of the rupee. The move up in silver caught a few retail buyers on the wrong foot after several sessions of range-bound trading and that has now changed as the intermission period in the bullion market is over.

Regional Premium

Traders, however, will continue to notice a regional premium for silver in South India. In Chennai, Hyderabad and Kerala, the metal is trading at ₹2,650 per 10 grams or ₹2,65,000 per kilogram while the rate in Mumbai, Delhi, Kolkata, Bangalore and Pune is ₹2,60,000 per kilogram, as per the rate list compiled by Goodreturns.in. The rate is also revised up to ₹2.6 lakh for Vadodara, Ahmedabad and other cities of Gujarat, taking cognizance of the nationally-integrated price network.

Closer to home, the RBI policy decision is the primary highlight for markets on Tuesday. There will be a close watch on the central bank’s rate action on a day when the committee will also offer guidance on the stance for the rest of the year. Market participants will also parse through the RBI’s commentary on economic growth and inflation as it updates its macroeconomic projections. With a major escalation in US-Iran tensions having been put off for now, analysts believe, any residual ambiguity around the conflict and its impact on domestic growth will weigh on RBI’s view on the economy.

On Monday, US President Donald Trump had tweeted that Iran had requested through its three regional allies and a top American diplomat that a military action planned by the US be delayed for 2 weeks. Tehran would then sit down for de-escalation talks, the President noted, in a statement originally brokered by Pakistan.

Silver Rates on Wednesday

Source: Goodreturns.in