Silv͏er Prices Trade A͏round͏ ₹2.5 Lakh/Kg͏ Ah͏ead of US Fed Decisi͏on Am͏id Oil Su͏rge͏

M͏umbai, 18 March 2026: Silver ͏prices remai͏ned͏ largely st͏eady͏ on W͏ednesd͏ay͏, t͏rading around ₹2,50,919͏ per k͏il͏ogram͏,͏ ͏as investo͏rs await͏ed the US Federal Res͏erv͏e’s upco͏ming p͏oli͏c͏y͏ annou͏ncement.͏ R͏ising crude oil ͏prices an͏d ongoin͏g geo͏politica͏l te͏nsio͏ns in the Middle ͏East have kept inflation concerns elevate͏d, creating a cautiou͏s trading ͏en͏vironme͏nt for precio͏us met͏als a͏cross domestic ͏and ͏interna͏tional͏ mark͏ets.͏

Silv͏e͏r Holds S͏tead͏y a͏t ₹͏2.5 L͏akh/Kg Ami͏d͏ ͏F͏ed An͏ticipatio͏n

On th͏e Mu͏l͏ti Commodity ͏Exchange (MCX), ͏silver slipped 0.9% t͏o ₹2,5͏0,91͏9 per k͏g, ͏while gold fell ͏0.2% to ₹1,55,͏607 pe͏r͏ 10 grams. Internat͏ion͏ally, sp͏ot silver wa͏s down 0.4% a͏t $79 per ounce, reflectin͏g subdued global d͏emand ahead ͏of the US Federal Reserve’s ͏expected decision to maintai͏n͏ interest rates. U͏S gold futu͏res for͏ Ap͏ril deli͏ve͏ry eas͏ed marginally t͏o $5,004.60 per ounc͏e, while other metals such as platinum͏ and palladium r͏ecorded small͏ declines and stability at͏ ͏$2,118.70 and͏ $1,͏601.63 per ounce, respectiv͏ely. Market ͏focus remains͏ ͏o͏n t͏he central bank’s guidance on energy-d͏riven inflation and͏ pote͏nt͏ial rate ad͏justmen͏ts.

Crude Oil Above $100 Per Barrel Pressures Silver Gains

Silver’s muted performance comes as crude oil prices remain above $100 per barrel, driven by heightened supply concerns in the Persian Gulf. Iranian attacks on the United Arab Emirates have intensified fears of global disruptions, while the Strait of Hormuz, a vital route for one-fifth of world oil shipments, remains largely closed.

The ongoing conflict has added inflationary pressures by raising transportation and manufacturing costs, indirectly affecting silver and other non-yielding metals. Analysts note that while rising oil typically supports precious metals as a hedge against inflation, a firm US dollar and expectations of unchanged interest rates have capped gains.

Middle East Conflict Escalates, Adding Volatility to Silver

Geopolitical tensions escalated further after Israel’s strike killed Ali Larijani, Iran’s national security chief, marking the most senior target since the US-Israel conflict began. Tehran’s refusal to accept de-escalation proposals and continued threats against tankers linked to the US and Israel have created ongoing supply anxieties, supporting the commodity risk premium embedded in precious metals prices. The sustained energy supply crunch has also reduced the likelihood of near-term rate cuts by the Federal Reserve and other major central banks, exerting additional pressure on silver.

International Precious Metals Show Minor Declines Amid Caution

Globally, precious metals were slightly subdued, with spot silver at $79 per ounce and spot gold at $5,000.77 per ounce. Platinum recorded a marginal drop of 0.3% to $2,118.70, while palladium remained steady at $1,601.63 per ounce. Analysts attribute the limited upside to a combination of geopolitical risk, a strong US dollar, and rising bond yields. International central banks, including those in the UK, Eurozone, Japan, Canada, Switzerland, and Sweden, are holding policy meetings this week, the first since the Iran conflict, adding further uncertainty to market expectations.

Domestic Silver Prices Mirror International Volatility

In India, silver prices exhibited mild recovery in the early trade but remained below recent peaks. Across key cities:

• Delhi: ₹2,75,100 per kg
• Mumbai: ₹2,75,100 per kg
• Kolkata: ₹2,75,100 per kg
• Chennai: ₹2,80,100 per kg

Spot silver recorded a marginal uptick to $79.46 per ounce in global markets, while domestic rates mirrored this cautious optimism, reflecting selective buying activity amid geopolitical concerns and firm crude prices.

Fed Rate Decision Looms as Key Determinant for Silver Direction

The US Federal Reserve is widely expected to maintain interest rates during its policy meeting, keeping markets focused on commentary regarding inflation and growth. Analysts highlight that energy-driven price pressures and geopolitical risks could influence the central bank’s forward guidance, impacting non-yielding assets like silver. Kelvin Wong, senior market analyst at OANDA, noted that near-term silver trends will largely depend on whether the Fed signals potential rate cuts or maintains its current trajectory in light of ongoing Middle East tensions.

Silver’s Year-to-Date Performance and Market Context

Silver has experienced fluctuations in 2026, remaining under pressure from rising crude prices and a firm US dollar. While the metal has not matched gold’s gains this year, the sustained geopolitical uncertainty, elevated energy prices, and persistent inflationary concerns have underpinned trading activity. Domestic investors continue to monitor MCX movements, where silver’s volatility reflects the broader interplay of global commodity markets and macroeconomic indicators.

Rising Crude and Strait of Hormuz Closure Support Silver Premiums

Persistent supply disruptions through the Strait of Hormuz have kept oil prices near $120 per barrel, further complicating the inflation scenario. Elevated energy costs increase transportation and production expenses, indirectly supporting the inflation-hedge appeal of precious metals like silver. Despite limited price action, silver remains influenced by these macroeconomic and geopolitical triggers, reflecting the complex global commodity landscape.

Silver prices remain sensitive to global oil dynamics, Middle East tensions, and the Federal Reserve’s policy guidance. Elevated crude prices and supply disruptions have sustained inflation pressures, creating a cautious trading environment. Market participants are advised to monitor geopolitical developments and central bank communications, as these factors will continue to shape silver price movements and overall commodity trends in the near term.