Silver prices witnessed a sharp surge in futures trade, jumping over Rs 6,000 per kilogram, as a landmark deal between the United States and Iran boosted market sentiment. The precious metal rebounded strongly after a volatile week.
Market Reaction to US-Iran Agreement
The silver futures contract for delivery in July surged by Rs 6,200, or 2.5 per cent, to trade at Rs 2.52 lakh per kg on the Multi Commodity Exchange (MCX). The rally was driven by optimism surrounding the US-Iran deal, which is expected to ease geopolitical tensions and improve global trade prospects.
Recovery from Recent Losses
In the past week, silver had declined by Rs 2,351, or nearly 1 per cent, settling at Rs 2.46 lakh per kg. The latest jump marks a strong recovery, as investors shifted focus to safe-haven assets amid uncertainty over the deal's implementation.
Analysts attributed the price movement to a combination of factors, including a weaker US dollar and expectations of increased industrial demand. Silver is widely used in electronics, solar panels, and medical devices, making it sensitive to economic cycles.
Global Impact and Outlook
The US-Iran agreement, which aims to curb Iran's nuclear program in exchange for sanctions relief, has been welcomed by global markets. However, experts caution that volatility may persist as details of the deal are finalized.
Market participants will closely monitor upcoming economic data and central bank policies for further cues. Silver prices are expected to remain range-bound in the near term, with support at Rs 2.40 lakh per kg and resistance at Rs 2.55 lakh per kg.
