Silver prices fall 1% ahead of Fed minutes, as US bond yields rise; hopes of easing US-Iran tensions cap losses

Silver rate today: Silver prices in India moved lower on Wednesday as investors were on edge against rising US bond yields, elevated crude oil prices, and uncertainty surrounding the Federal Reserve’s interest rate outlook. However, easing concerns over the United States-Iran conflict kepts the decline capped.

Market participants also remained cautious ahead of the release of the minutes from the US Fed’s April policy meeting later in the day, which could provide fresh cues on the central bank’s stance on inflation and future rate cuts.

MCX silver declined 1% to ₹2,67,230 per kg, while MCX Gold fell 0.67% to ₹1,57,959 per 10 grams

However, globally, Spot silver rose 1% to $74.55 per ounce, while spot gold gained 0.4% to $4,499.69 per ounce by 0059 GMT. Gold had touched its lowest level since March 30 in the previous session. Meanwhile, US gold futures for June delivery slipped 0.2% to $4,502.30 per ounce.

Investors await Fed minutes amid easing geopolitical tensions

Investors were on edge after US President Donald Trump said on Tuesday that Washington may still need to strike Iran again if required. Trump stated that he had earlier been close to approving an attack before deciding to postpone it. He also warned that additional strikes could be launched in the coming days as part of efforts to end the conflict.

However, the Republican-led US Senate signaled opposition to expanding the conflict after indicating resistance to prolonged military involvement during a procedural vote on Tuesday. Meanwhile, US Vice President JD Vance also stated the United States and Iran had made considerable progress in negotiations, adding that neither side wanted military operations to resume.

Despite those comments, Brent crude continued to hold near USD 111 per barrel on Wednesday, reflecting persistent concerns over geopolitical tensions and potential supply disruptions in the region.

At the same time, US Treasury yields remained elevated, adding pressure on precious metals markets. The 10-year US Treasury yield has surged more than 20 basis points over the last four sessions, while the 30-year Treasury yield climbed to its highest level since 2007.

The 30-year US bond yield rose another one basis point on Wednesday to 5.19%, while the benchmark 10-year yield remained largely unchanged at 4.67%.

Investors are now closely monitoring the release of the minutes from the US Federal Reserve’s April policy meeting later in the day for fresh signals on the central bank’s interest rate outlook.

Rising energy prices have continued to fuel inflation concerns, increasing fears that the Federal Reserve and other major central banks may need to keep interest rates higher for longer instead of delivering the rate cuts markets had previously expected. Lower interest rates generally support non-yielding assets such as gold.

Key Levels to Watch

Renisha Chainani, Head - Research at Augmont, noted that Silver, having already absorbed a sharp weekly decline, faces a critical juncture near $75/oz. A breach of this level would open the door to the next downside supports at $70/oz and $67/oz, respectively. On the upside, a technical rebound from current levels could carry prices back toward the $80–$82/oz zone, predicted the expert.

For the yellow metal, she highlighted that it has found near-term support around the $4500/oz level.

"A sustained break below this threshold would expose the next significant support at $4300/oz, representing meaningful further downside from current levels. Conversely, if prices stabilise and recover from this zone, the immediate upside target lies in the $4700–$4750/oz range," suggested Chainani.

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.