Silver futures experienced a sharp decline of 4 percent on Friday, settling at Rs 2.28 lakh per kilogram, as uncertainty surrounding the potential US-Iran nuclear deal continued to weigh on market sentiment. The precious metal had already suffered a steep correction in the previous trading session, plummeting Rs 14,235, or 5.7 percent, to close at Rs 2.37 lakh per kilogram from Wednesday's closing level of Rs 2.51 lakh per kilogram.
Market Sentiment Hit by Geopolitical Uncertainty
Traders and investors remain cautious as negotiations between the United States and Iran over a new nuclear agreement show signs of stalemate. The lack of clarity on the outcome has led to increased volatility in precious metals markets, with silver bearing the brunt of the sell-off. Analysts suggest that any positive development in the talks could reverse the trend, but for now, bearish pressure dominates.
Impact on Silver Prices
The continuous decline in silver futures has erased gains made earlier this month. The metal, which had been trading above Rs 2.50 lakh per kg, is now facing strong resistance at lower levels. Market participants are closely watching for any fresh triggers, including US economic data and Federal Reserve policy signals, which could further influence prices.
- Silver futures for delivery in June fell by Rs 9,200 to Rs 2.28 lakh per kg on the Multi Commodity Exchange (MCX).
- The decline was in line with global trends, where spot silver also dropped over 3 percent in international markets.
- Investors are shifting towards safe-haven assets like gold, which saw a marginal uptick, while silver remains under pressure due to its industrial demand sensitivity.
Outlook for Silver
Experts believe that silver prices could remain volatile in the near term, with key support at Rs 2.20 lakh per kg. A breakthrough in US-Iran talks could provide a boost, but any escalation in tensions might lead to further declines. The overall trend suggests caution, as the metal struggles to find a bottom amidst macroeconomic uncertainties.
