Silver Steadies on Monday; Premium Cities Bounce ₹50 

Mumbai, April 27: Silver rose marginally in India on Monday, recovering from last week’s sharp losses to trade higher after recouping earlier losses on Monday as rumours of fresh Iranian peace talks with the US eased fears around supply disruptions through the Strait of Hormuz.

The national spot rate for silver today is ₹260 per gram (₹2,600 per 10 grams and ₹2,60,000 per kilogram), up ₹0.10 per gram (₹1 per 10 grams) from last Friday’s national spot price of ₹259.90 per gram (₹2,599 per 10 grams). The rebound is slight in percentage terms, but after falling for three straight trading sessions, silver at the national level is now showing some steadiness after sharp declines over the past week, signalling that the selling pressure which gripped markets over those three days may have largely abated for now.

City-wise Silver Prices

India’s premium markets for silver saw the sharpest moves today. Chennai, Hyderabad and Kerala rebounded from Friday’s decline, rising ₹50 on Monday to reclaim the ₹2,700 per 10 gram level. These three markets dipped ₹50 last Friday, abruptly reversing strong gains from Wednesday, but sentiment improved enough on Monday for participants in these markets to buy back into previous positions lost on Friday. These three markets trade at an average ₹100 premium to the rest of India, due to structurally higher demand and import costs, and have maintained this premium even when “base” markets remain unchanged.

The silver price in Mumbai, Kolkata and Pune edged ₹1 higher to ₹2,600 per 10 grams from ₹2,599 on Friday, while traders in Delhi, Bangalore, Vadodara and Ahmedabad held their positions at Friday’s price of ₹2,600 per 10 grams. This lack of movement on both ends of the spectrum underscores the unsure sentiment across the silver market as geopolitical headlines continue to drive volatility, with traders in many locations unwilling to take fresh positions until they have greater clarity on Iran-US relations.

Oil and Silver Prices

Oil prices rose as much as 2% Monday as US-Iran peace talks remained stalled and shipments through the Strait of Hormuz remain constrained, continuing to threaten global supply. Brent crude was last seen trading $2.16 or 2.05% higher at $107.49 a barrel, its highest since April 7, while WTI oil gained $1.77 or 1.88% to $96.17 per barrel. Higher oil prices tend to lift silver, as energy cost drives broader inflation expectations which in turn drive investment demand for inflation-hedging assets like silver, one of the most liquid precious metals. With Brent above $107, it’s likely that oil will continue to provide an upwards inflationary impulse moving forward — and when oil moves up for supply-side reasons rather than demand (as is the case here), silver has a tendency to rally with it. Silver should continue to find buying as long as oil prices stay above $100 and tension around the Strait of Hormuz continue to act as a geopolitical flashpoint.

Silver Prices in Different Cities (10 gm)

Source:

• www.goodreturns.in