Silver rate today in India recovers 2.7% on dip buying: What should investors do?

Silver prices on MCX rebounded more than 2.5% from the day’s low on Monday, March 30, as investors stepped in to buy the metal on dips. However, the upside remained limited due to a stronger dollar and a sharp rise in energy prices, which heightened inflation concerns and further reduced expectations of U.S. Federal Reserve interest rate cuts this year.

On MCX, silver price recovered 2.7% to ₹2,31,856 per kg from its day's low of ₹2,25,763 per kg, while gold price also rebounded 3.5% to its day's high of ₹1,49,250 per 10 grams from day's low of ₹1,44,212. Both precious metals were in the red in early deals.

In international markets, spot silver rose 1.8% to $70.81 per ounce, while spot gold rose 0.8% to $4,529.58 per ounce as of 0913 GMT, after gaining more than 1% earlier. U.S. gold futures for April delivery gained 0.8% to $4,558.30.

Among other precious metals, spot platinum gained 3.7% to $1,931.25 and palladium climbed 3.6% to $1,426.89.

Silver, Gold gains still capped

The rise in precious metals came on the back of dip buying. However, gains were capped driven by a sharp rise in crude oil prices, which has intensified inflation concerns globally. Brent crude surged above $115 per barrel after Yemeni Houthis launched attacks on Israel over the weekend, further escalating the ongoing conflict. The contract has risen 60% in March, marking a record monthly increase.

The surge in oil prices has raised fears that inflation could remain elevated, thereby reducing the likelihood of monetary easing. Traders are now pricing in minimal chances of a U.S. rate cut this year, a sharp shift from earlier expectations of two rate cuts before the conflict began.

A stronger U.S. dollar also added pressure on bullion prices. The dollar has appreciated more than 2% since the U.S.-Israeli war on Iran began on February 28, making gold and silver more expensive for holders of other currencies and dampening demand.

Geopolitical developments have further added to uncertainty. U.S. President Donald Trump stated in an interview with the Financial Times that he wants to “take the oil in Iran” and could potentially seize the export hub of Kharg Island, signalling a more aggressive stance that could prolong the conflict and keep energy prices elevated.

Although gold is traditionally viewed as a hedge against inflation, the current environment presents a challenge. Elevated interest rates reduce the appeal of non-yielding assets like gold, offsetting the positive impact of inflation and keeping prices under pressure.

Outlook ahead

Gold and silver have retreated from recent highs as geopolitical tensions and a mixed macro backdrop kept bullion under pressure.

Renisha Chainani, Head - Research at Augmont, said bullion prices slipped after U.S. President Donald Trump warned of stronger military action against Iran following the rejection of peace talks.

“Silver and gold have retreated as geopolitical tensions intensified after U.S. President Donald Trump warned of stronger military action against Iran following the rejection of peace talks. While a temporary pause on targeting energy infrastructure until April 6 provided limited relief,” Chainani said.

She said Iran rejected the U.S.’s 15-point peace proposal and demanded recognition over the Strait of Hormuz, while limited oil tanker movement eased immediate supply concerns but rhetoric from both sides kept uncertainty high.

“The macro backdrop remains mixed. While prolonged conflict raises inflation risks, it also increases the probability of an economic slowdown in the U.S. Wall Street is revising growth forecasts lower while raising inflation and recession expectations,” Chainani said.

As per Chainani, Silver is holding above key support at $66 ( ₹2,19,000). Prices are expected to consolidate within a broad range of $66 to $75 ( ₹2,38,000). A breakout on either side will signal the next move, while short-term price action may remain choppy due to macro and geopolitical factors, she added.

For Gold, she predicted: Gold prices are finding strong support near $4350 ( ₹1,39,000). The price action suggests a consolidation phase, with the metal likely to trade in a defined range of $4350 to $4600 ( ₹1,45,000) in the near term. A sustained move outside this band will determine the next directional trend, with volatility expected to persist.

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.