Silver rate today slips marginally on softer dollar, falling oil prices: Should you buy amid current volatility?

Silver rate today declined slightly on Wednesday, March 11, on the back of easing oil prices and a softer US dollar. Gold also declined.

On MCX, silver price fell 1% to its day's low of ₹2,75,000 per kg while MCX gold price was down 0.30% to ₹1,62,800 per 10 grams.

Spot silver edged 0.1% lower to $88.35 per ounce, while spot gold rose 0.3% to $5,208.08 per ounce as of 02:43 GMT. Meanwhile, US gold futures for April delivery slipped 0.5% to $5,216.80.

Other precious metals also saw mixed movements. Spot platinum fell 0.5% to $2,190.44 per ounce, while palladium advanced 0.8% to $1,667.73.

Why silver prices fell today?

White metal prices fell as oil prices dropped below $90 per barrel, cooling some inflation concerns in global markets. The decline came a day after US President Donald Trump predicted that the war with Iran could end quickly. At the same time, the International Energy Agency reportedly proposed the largest-ever release of oil from strategic reserves to counter supply disruptions.

Despite the easing in oil prices, the geopolitical situation continues to weigh heavily on markets. The ongoing war has effectively shut the Strait of Hormuz — a critical chokepoint through which nearly 20% of the world’s oil and liquefied natural gas flows. Tankers have remained stranded for more than a week, forcing producers to halt output as storage facilities fill up, which had earlier driven energy prices sharply higher.

The International Energy Agency’s proposal to release strategic reserves aims to cushion the supply shock triggered by the conflict in the Middle East.

Meanwhile, a gauge of the US dollar slipped as much as 0.1%, further shaping the outlook for precious metals.

The conflict has now entered its 12th day and continues to disrupt crude production and refining operations across the Middle East. According to a Bloomberg report quoting the Pentagon, the United States and Israel launched their most intense round of attacks yet against Iran and indicated that military operations would continue until the Islamic Republic is defeated.

This more aggressive stance contrasted with Donald Trump’s earlier remarks suggesting that the conflict could end soon, adding to uncertainty across global financial markets.

Investors are now closely watching upcoming US inflation data for further cues on interest rates. The US consumer price index (CPI) for February is due later in the day, while the Personal Consumption Expenditures (PCE) index — the Federal Reserve’s preferred inflation gauge — is scheduled for release on Friday.

According to CME Group’s FedWatch tool, investors widely expect the US Federal Reserve to keep interest rates unchanged at the end of its two-day policy meeting on March 18.

Should you buy silver amid volatility?

Silver prices have witnessed volatile movements since tensions escalated in the Middle East, with geopolitical uncertainty driving fluctuations in precious metals.

Tata Mutual Fund indicated that despite short-term volatility, investors could consider accumulating precious metals during price corrections, given the supportive long-term fundamentals and macroeconomic uncertainties.

“The current geo-economic factors may support gold and silver prices with the addition of structural and cyclical fundamental factors. Investors may look for accumulation on any decline in the prices. Silver is a developing growth story and the trend depends on recovery in industrial demand,” said Tata Mutual Fund.

The fund house added that investors could adopt a staggered approach when investing in silver, especially considering the commodity’s inherently volatile nature. According to its view, any decline in prices triggered by a stronger dollar or easing geopolitical tensions could offer opportunities to gradually accumulate gold and silver for medium- to long-term investments.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.