Silver rate today rises as dollar weakens, oil prices retreat amid US-Iran peace hopes

Silver rate today: Silver prices in India as well as globally, moved higher on Thursday, supported by a weaker US dollar and declining crude oil prices, as investors evaluated renewed hopes for a resolution to the US-Israeli war with Iran.

MCX silver rate was flat but in the green, It rose 0.3% to ₹2,63,711 per kg. Meanwhile, MCX gold price was flat at ₹1,54,332 per 10 grams

Silver advanced, with spot silver climbing 0.6% to $73.13 per ounce. Spot gold rose 0.7% to $4,461.09 per ounce as of 0218 GMT, while US gold futures for August delivery gained 0.5% to $4,487.90.

The US dollar eased during the session, making dollar-denominated bullion cheaper for holders of other currencies and boosting demand for precious metals.

Market participants also continued to monitor developments in the Middle East. Iran's foreign minister said there had been "no tangible progress" in negotiations aimed at ending the conflict, as fresh military strikes by both the US and Iran tested an already fragile ceasefire. However, US President Donald Trump struck a more optimistic tone, telling reporters at the White House that a breakthrough "could happen...over the weekend."

Ceasefire Hopes, Falling Oil Prices and Fed Signals in Focus

Adding to hopes of a broader de-escalation in the region, Israel and Lebanon agreed to implement a ceasefire, although both sides said the arrangement would require a "complete cessation" of attacks by Iran-backed Hezbollah.

Meanwhile, political pressure over the conflict continued to build in Washington. On Wednesday, the Republican-controlled US House of Representatives approved a resolution aimed at preventing President Donald Trump from continuing the war against Iran. The move highlighted growing concerns among members of his own party regarding the conflict, which has now lasted three months.

Oil prices also came under pressure following the Israel-Lebanon ceasefire agreement, raising expectations that a wider diplomatic solution could emerge. Brent crude futures fell 0.69% to $97.14 per barrel, while US West Texas Intermediate crude declined 0.65% to $95.40 per barrel.

The decline in oil prices was closely watched by gold investors because elevated energy costs can fuel inflation and force central banks to maintain higher interest rates for longer. Although gold is often viewed as a hedge against inflation, higher interest rates generally reduce the appeal of non-yielding assets such as bullion.

Investors were also assessing comments from New York Federal Reserve President John Williams, who said he does not expect inflationary pressures arising from the Middle East conflict to persist for an extended period. Williams reiterated that there is currently no need for the Federal Reserve to alter its monetary policy stance.

With the dollar weakening, oil prices retreating and diplomatic efforts continuing in the Middle East, traders are likely to remain focused on geopolitical developments and signals from the Federal Reserve for clues about the next direction in gold prices.

Technical Triggers

Renisha Chainani, Head - Research at Augmont, expects Silver to remain range-bound between $72 and $78.50. It has recovered from the lower boundary and is now expected to climb toward the upper boundary, she predicted.

For gold, Chainani noted that it has been staying range-bound between $4,450 and $4,600. Prices have rebounded from the lower edge of the range and are now expected to advance toward the upper edge, she added.

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.