New Delhi: Silver prices rebounded by Rs 6,911 to Rs 2.26 lakh per kilogram in futures trade on Friday as investors returned to the market following a temporary pause in tensions between the US and Iran. On the Multi Commodity Exchange, the white metal for May delivery soared by Rs 6,911, or 3.14 per cent, to Rs 2,26,785 per kg. In the previous session, silver futures plunged Rs 14,960, or 6.37 per cent, to close at Rs 2,19,874 per kg.
Commodity markets remained closed in the morning session on account of Ram Navami and resumed trading in the evening session on Thursday. In the overseas market, silver futures for the May contract edged up by USD 2.02, or 3 per cent, to USD 69.96 per ounce on the Comex. Analysts said silver prices rebounded after US President Donald Trump paused military strikes on Iran's energy infrastructure for 10 days, signalling a window for diplomacy between Washington and Tehran.
However, Trump's warning of stronger military action following Iran's rejection of peace talks has capped the upside of the precious metal, Renisha Chainani, Head of Research at Augmont, said. "A temporary pause on targeting energy infrastructure until April 6 provided limited relief; the absence of a clear resolution continues to weigh on sentiment and cap upside in bullion," she added.
Negotiations remain fragile as Iran rejected Washington's 15-point peace proposal and demanded recognition over the Strait of Hormuz, keeping markets volatile. Chainani noted that while prolonged conflict raises inflation risks, it also increases the probability of an economic slowdown in the US, creating a mixed outlook for bullion. She added that silver is holding above key support at USD 66 per ounce (around Rs 2.19 lakh per kg) and is expected to consolidate in a broad range of USD 66-75 (Rs 2.38 lakh per kg) in the near term.
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