Silver Prices Jump ͏3.3% to ₹͏2,74,2͏51 on ͏MCX as US-Ira͏n Con͏flict In͏tensifi͏es ͏and Dollar We͏akens

Mumb͏ai,͏ March 5, 2͏02͏6: Silver prices registered a sharp rise of 3.3 per c͏ent in Thursday’s trading session in line with escalating military confrontation in the Middle East, which led investors to seek refuge in safe-haven assets, while a softer͏ US dollar added to t͏he white metal’s gains. The regional war entered its sixth day with no i͏mmediate solution in sight, keeping marke͏ts on edge.

Silver Surges ₹8,691 Per kg on MCX Amid͏ Middle East Escalation and Energy Supply Dis͏ru͏p͏t͏ion

On the Multi Commodity Exchange, silv͏er prices surged 3.3 per c͏ent or ₹8,691 to settle at ₹2,74,251 per ͏kg. The ͏steep rise in the white metal was spurred by geopolitical te͏nsions heating up sharply after a US submarine attacked an Iranian warship near Sri L͏anka, killing at least 80 pe͏rsonnel, according to reports. The incident signalled a s͏erious escalation in the ongoing hostilities and disrupted global energy s͏upplies when the Strait of Hormuz was sealed off, driving inve͏stors into traditional store-of-value a͏ssets.

Spot Silver Climbs 1.2% to $84.43 Per Ounce as Geopolitical Jitters Grip Global Markets

Internationally, spot silver gained 1.2 per cent to reach $84.43 per ounce, reflecting sustained demand for the white metal amid rising uncertainty. The continuous attacks and resulting shutdown of the Strait of Hormuz have disrupted global energy supply routes, heightening concerns over economic stability and strengthening the appeal of silver as a safe-haven asset.

Dollar Weakens to Three-Week Low, Providing Additional Support to Silver Prices

The US dollar posted its steepest fall in three weeks on Wednesday as rising oil prices and gains in global equities reduced demand for the safe-haven currency. Since silver is priced in dollars, a weaker greenback makes the metal cheaper for buyers holding other currencies, thereby boosting demand. The dollar index decline provided crucial support to silver even as inflation concerns mounted due to energy supply disruptions from the Middle East conflict.

NATO Intercepts Iranian Missile Fired Toward Turkey as Conflict Expands Regionally

In a separate development that underscored the widening geographic scope of the confrontation, NATO air defence systems intercepted and destroyed an Iranian ballistic missile that had been fired toward Turkey. The incident raised concerns about broader regional involvement and potential spillover effects that could further impact silver prices. Meanwhile, Tehran rejected reports suggesting its Ministry of Intelligence had contacted Washington for negotiations, describing the claims as “pure falsehood” and signalling that diplomatic efforts to halt the fighting remain uncertain.

Political Succession in Iran Suggests Prolonged Confrontation, Supporting Safe-Haven Demand for Silver

Political developments inside Iran indicated preparations for a prolonged confrontation, with the son of Iran’s slain supreme leader reportedly emerging as a leading contender to succeed him. The development reinforced market perceptions that Tehran is unlikely to back down under external pressure. The ongoing US-Israel military campaign, which began five days ago, has already resulted in hundreds of casualties and triggered sharp moves across global financial markets, with energy supply concerns adding to inflation expectations worldwide and supporting demand for silver.

US Jobless Claims Data and February Employment Report in Focus for Further Direction in Silver

Beyond geopolitical developments, investors are closely watching upcoming US economic data that could influence interest rates and currency markets, thereby impacting silver prices. Weekly US jobless claims data scheduled for release later on Thursday may provide fresh clues about labour market health. Attention will also shift to the US employment report for February due on Friday, which is widely seen as a key indicator for the Federal Reserve’s monetary policy outlook. Labour data will be scrutinised for signals on potential policy easing or tightening that could affect dollar movement and silver prices.

Silver markets remain highly sensitive to Middle East developments, with the Strait of Hormuz shutdown affecting global energy supplies and inflation expectations. Currency movements, particularly dollar strength or weakness, will continue influencing white metal prices alongside geopolitical headlines. US labour market data this week may provide additional direction, with employment figures potentially impacting rate expectations and subsequently silver demand. The conflict’s expansion and diplomatic developments remain key variables for near-term price movements.