Silver Prices Down on Monday Despite Iran-US Tensions; Weak Industrial Demand Bears on Value 

Mumbai, April 13: Private sellers cut prices across India on Monday, erasing Friday’s recovery gains even as tensions between the US and Iran spiked over the weekend to multi-week highs — though it may come as a surprise to some market watchers who anticipated silver to hold steady on safe-haven buying demand. India’s national average silver price settled at ₹255 per gram (₹2,550 per 10 grams) on Monday, down ₹50 from Friday’s national level of ₹2,600 per 10 grams, retracing the entirety of Friday’s late-session recovery in a single day to take prices back to Thursday’s levels.

Premium markets in the South were hit hardest: Chennai, Hyderabad and Kerala all traded at ₹2,650 per 10 grams on Friday, sustaining through the wild swings of Wednesday, Thursday and Friday — but retreated ₹100 Monday morning to fall back in line with the rest of the country at ₹2,550 per 10 grams. Mumbai, Delhi, Kolkata, Bangalore, Pune, Vadodara and Ahmedabad also traded down ₹50 each to ₹2,550.

Analysts suggest that pressure from weak industrial demand fundamentals across silver’s major applications continues to outweigh any safe-haven upside being seen in gold and other precious metals. Industrial demand — especially in solar photovoltaic modules, electronics, wires and cables — drives more than half of all silver consumption worldwide, and weakens noticeably as global growth forecasts deteriorate. Risk aversion fueled by escalations in the US-Iran conflict weighs heavily on manufacturing activity and expectations for future growth, both critical components in silver demand equation.

Why Oil Prices Above $100 Matters for Silver Prices

A return to $100 oil poses both bullish and bearish outcomes for silver investors. The bearish case for higher oil prices centers around growth and industrial demand, particularly electronics and photovoltaic manufacturing which face headwinds from rising input costs and tightening margins. Meanwhile, the silver supply chain — mining companies, refineries and metals transport/delivery services — all experience higher operating costs when oil trades this high, naturally creating a floor under prices through higher service costs (though exchange traders are typically insulated from this effect). For Indian importers, higher oil weighs on the rupee as well, which has been steadily appreciating against the US dollar ever since tensions eased Friday — that currencies reverses again will also add to landed silver costs from overseas suppliers.

Iran Naval Blockade Begins Monday as Talks Fail

Iran-US tensions spiked sharply over the weekend as diplomatic talks between the nations failed to reach an agreement in Pakistan on Sunday; the failed negotiations have opened the door for a unilateral US naval blockade on Iranian ports starting Monday morning. US Central Command began ordering all US Naval ships to blockade Iranian ports, coastal regions, the Gulf of Oman and the Arabian Gulf effective Monday at 10am Eastern Time, according to a press release issued Sunday evening. The move will block all vessels from entering or exiting Iranian ports until further notice, escalating tensions between Washington and Tehran that have been simmering since Friday. Global markets are pricing in worst-case uncertainty following the news, with equity markets from Tokyo to Mumbai selling off sharply Monday and Brent crude soaring through $100 per barrel.

US Announces Naval Blockade

US Central Command has announced a naval blockade of all Iranian ports, coastal waters, and the Gulf of Oman starting Monday, April 13, 2026, at 10 a.m. ET (14:00 GMT). This action stops ships of all nations from accessing Iranian ports, with President Trump vowing to intercept vessels that have paid tolls to Tehran.

Silver Rates Across Cities: Friday vs Monday (Per 10 Grams)

Source: www.goodreturns.in