Silver Futures Jump ₹12,861 To ₹2.36 Lakh/Kg On Weak Dollar
Silver prices rebounded sharply, rising Rs 12,861 (nearly 6%) to Rs 2.36 lakh/kg in futures trade, ending a 10-day slump. The surge was driven by a weaker US dollar, easing inflation fears after crude corrections, global bullish sentiment, and renewed value buying. Analysts expect a mild near-term recovery, though breaking recent highs may be difficult.
Silver Futures Jump ₹12,861 To ₹2.36 Lakh/Kg On Weak Dollar | File Pic (Representational Image)
New Delhi: Silver prices surged Rs 12,861 to Rs 2.36 lakh per kilogram in futures trade on Wednesday tracking a weak US dollar and easing inflation fears following a correction in crude.
Ending a 10-day rout, the white metal for May delivery soared Rs 12,861, or nearly 6 per cent, to Rs 2,36,802 per kilogram on the Multi Commodity Exchange.
Analysts said the sharp rebound in silver was largely driven by a bullish sentiment in precious metals in the overseas markets and a weak US dollar.
"Silver's sharp rebound on Wednesday were driven by a softer US dollar and easing inflation concerns as crude oil prices corrected," Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said.
He added that the pullback in energy markets helped temper expectations of higher global interest rates, offering additional support to precious metals.
In the international market, silver futures for the May contract increased by USD 3.87, or 5.56 per cent, to USD 73.44 per ounce.
Silver prices opened higher globally by more than 3 per cent as the dollar index eased following reports that the US is seeking a one-month ceasefire with Iran to conduct negotiation talks, Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.
Despite troop deployments, easing conflict fears, and a higher-for-longer interest rate signal from Federal Reserve Governor Michael Barr supported market sentiment, he added.
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Hareesh further said the precious metal's upside was also driven by value buying after recent sharp corrections, with attractive entry levels triggering renewed demand alongside short covering.
On the outlook, he said the precious metal may witness a mild near-term recovery, but breaking recent highs looks difficult.
"While supportive geopolitics could underpin sentiment, a firm US dollar is likely to cap strong upside, keeping price movements relatively restrained for now," Hareesh said.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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