Silver rate today: White metal drops 1% on profit booking, even as Gold price extends gains as Middle East tensions ease

Silver rate today: Silver prices in India fell on Wednesday, April 1, on profit booking, even as gold prices extended their winning streak for a third straight session as hopes of a possible end to the Middle East conflict improved investor sentiment. A softer US dollar also supported the precious metal. Gold prices also gained in trade today.

Silver price on MCX fell 1% to ₹2,38,501 per kg, while Gold price rose 0.73% to ₹1,51,870 per 10 grams

In international markets as well, Gold prices stayed elevated, with bullion rising as much as 1.2% to cross $4,700 an ounce, after already surging 3.5% in the previous session. Spot gold was up 0.6% at $4,695.67 an ounce as of 9:36 a.m. Singapore time.

However, Silver moved in the opposite direction in international markets and slipped 0.9% to $74.50 an ounce, while platinum and palladium edged higher.

What’s driving the prices

A key trigger for the latest move came from geopolitical commentary out of Washington and Tehran. US President Donald Trump said he expected the US to bring the war with Iran to an end within two to three weeks, indicating that Washington believed its primary military objectives had largely been achieved. He also suggested that reopening the Strait of Hormuz could be left to others.

That mattered because the Strait of Hormuz remains one of the world’s most critical energy chokepoints. Before the war, roughly one-fifth of global oil and liquefied natural gas shipments moved through the waterway. Any sign that the route may remain functional or reopen smoothly has major implications for oil, inflation, and global market stability.

On the other side, Iran also appeared to indicate that an end to the conflict may be possible — but only on its own terms. State media quoted President Masoud Pezeshkian as saying the country was prepared to end the war if its conditions were met, including control over Hormuz.

The easing in immediate war anxiety weighed on the US dollar. The Bloomberg Dollar Spot Index slipped marginally after falling 0.6% in the previous session. A weaker dollar generally makes commodities such as silver and gold more attractive to holders of other currencies, often lending support to prices.

At the same time, investors have begun reassessing the inflation and interest-rate impact of the conflict. Bond traders are scaling back bets that central banks will need to raise rates to counter inflationary pressures from the war. Instead, attention is shifting toward the possible drag on economic growth if the conflict leaves lasting scars on global trade and energy flows.

That shift is important for precious metals. Lower expectations of rate hikes tend to benefit non-yielding assets such as gold and silver because they reduce the opportunity cost of holding them. The outlook was also helped by comments from Federal Reserve Chair Jerome Powell earlier this week, who said longer-term inflation expectations remain anchored.

Markets are now watching Trump’s scheduled address to the nation on Wednesday night, where he is expected to provide an “important update on Iran,” according to White House Press Secretary Karoline Leavitt. Investors will be looking for clearer signals on whether diplomacy is genuinely taking shape or whether the latest optimism could prove premature.

Outlook this week

Renisha Chainani, Head - Research at Augmont expects gold to trade sideways-to-up next week, in a range roughly $4,300–$4,600 ( ₹1,39,000 – ₹1,50,000).

"Silver may see a wider range between $65–$75 ( ₹2,19,000 – ₹2,38,000), reflecting its higher volatility. Near-term price drivers include any fresh Middle East news (cease or escalation), U.S. inflation data (PCE), and Fed commentary. A weaker USD or renewed hawkish Fed pivot (if inflation ticked up) could push gold back toward $4,700–$4,800, while fresh ceasefire optimism or easing inflation could lift prices," she noted.

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.