Silver Price in India Plunges Over ₹2,300 per Kg Amid Crude Oil Price Surge and Strengthening Dollar

Silver Price in India Slips Amid Global Market Weakness

The silver price in India took a hit on Friday, April 24, as the precious metal's global value declined due to a surge in crude oil prices, rising bond yields, and a stronger U.S. dollar.

The MCX Silver rate fell by 1% or over ₹2,300 to ₹2,39,200 per kg, while the MCX Gold price lost 0.4% or over ₹600 to ₹2,41,513 per 10 grams. In global markets, Spot silver fell 0.3% to $75.22 per ounce, and Spot gold edged down 0.1% to $4,686.29 per ounce as of 0230 GMT. This decline marks the end of a four-week winning streak, with gold prices down 3% so far this week.

Read also: Gold and Silver Prices in Delhi, Mumbai, Pune, and Other Cities on 25 April: Retail Rates

The pressure on bullion prices comes as Brent crude prices have jumped over 17% this week to above $105 per barrel, with the key Strait of Hormuz still largely closed despite an extension of the Iran ceasefire. Higher oil prices increase transportation and production costs, fuelling inflation and reinforcing expectations that interest rates may remain higher for longer – typically negative for non-yielding assets like gold and silver.

Geopolitical tensions escalated after Iran showcased tighter control over the strait, releasing visuals of commandos boarding a cargo ship following the collapse of U.S.-Iran peace talks. The U.S. dollar is up 0.7% this week, making bullion more expensive for other currency holders, while benchmark 10-year U.S. Treasury yields have risen over 2%, increasing the opportunity cost of holding non-yielding metals.