Silver Steady: Prices Unchanged Across Cities on Thursday

Mumbai, April 16: Silver prices in all cities traded flat on Thursday following a similar trend that we have seen in bullion markets in last two days. In national terms, silver price on Thursday continued to rule steady at ₹270 per gram or ₹2,700 for 10 grams, same as yesterday’s closing rate as mild profit booking after yesterday’s sharp gain and fading safe-haven demand on hopes of de-escalation weighed on prices.

The steadiness in silver prices follows a sharp jump of ₹150 per 10 grams registered on Wednesday, when prices climbed from around ₹2,550 to ₹2,700. Thursday’s flat reading suggests the market is consolidating those gains rather than extending them, with traders awaiting fresh directional cues from global markets before making the next move.

In local city markets, too, silver price on Thursday continued to rule steady at ₹2,700 per 10 grams in Mumbai, Delhi, Kolkata, Bangalore, Pune, Vadodara and Ahmedabad which are same as yesterday’s levels which indicates mild demand for the metal in these cities and absence of any fresh triggers.

While silver price remained at premium in Chennai, Hyderabad and Kerala where it rules at ₹2,750 per 10 grams as against ₹2,700 in rest of the country mainly on account of local taxes and higher demand.

Market participants are closely tracking diplomatic developments around the Iran conflict, which remains a pivotal factor for precious metals. The development of the talks has helped cool crude oil prices raising concerns of higher inflation which may hit global growth sentiment. Cooling crude oil prices have also pared safe-haven demand for precious metals like silver.

Oil Softens as Ceasefire Hopes Build

Oil prices retreated in early Thursday trade, with Brent crude futures falling 44 cents or 0.5% to $94.49 a barrel, while US West Texas Intermediate slipped 70 cents or 0.8% to $90.59. The decline was driven primarily by reports that Iran could allow ships to pass freely through the Omani side of the Strait of Hormuz if a peace deal was reached, removing a significant chunk of the geopolitical risk premium that had propped up prices.

Bourses Worldwide Cheer

Stock exchanges across the globe have been riding a wave of cautious optimism this week, with investors increasingly pricing in the possibility of a negotiated end to the Iran conflict. Wall Street led the charge on Wednesday, with the S&P 500 and Nasdaq Composite scaling fresh record highs as the White House signalled confidence in reaching a deal. Asian markets followed suit on Thursday, with Japan’s Nikkei jumping 1.5% and the MSCI Asia-Pacific index notching a third straight day of gains. Closer home, Indian equities opened firmly in the green, with both the Sensex and Nifty advancing smartly — a testament to how powerfully the prospect of Middle East peace is reshaping sentiment across global financial markets.

Silver Rates and Oil Prices

The retreat in crude oil prices is likely to have a nuanced impact on silver markets, given the metal’s dual role as both a precious and industrial commodity. With Brent easing to around $94.49 a barrel and WTI slipping to $90.59, the cooling of geopolitical tensions—particularly around a potential Iran deal—has reduced the immediate safe-haven demand that often supports precious metals, including silver.

Unlike gold, however, silver is more closely tied to industrial activity. Lower oil prices can act as a positive trigger for global growth by easing input costs, improving manufacturing margins, and supporting consumption. This, in turn, can boost industrial demand for silver, which is widely used in electronics, solar panels, and other manufacturing sectors. As a result, softer crude prices may indirectly lend support to silver through improved economic sentiment.

At the same time, easing oil prices reduce inflationary pressures, which can limit the upside in silver from an investment perspective. With inflation concerns cooling, the urgency to hedge through precious metals diminishes, potentially capping sharp rallies.

Source:

• www.goodreturns.in