Silver futures plunged 4 per cent, extending recent losses as uncertainty surrounding the US-Iran peace process and weakness in global commodity markets weighed heavily on investor sentiment.
On the Multi Commodity Exchange (MCX), silver contracts for July delivery fell by ₹8,766, or 4 per cent, to ₹2,28,806 per kilogram. The decline follows a sharp correction in the previous trading session when the white metal dropped nearly 5.7 per cent.
Market analysts attributed the selloff to fading optimism over the implementation of the US-Iran peace agreement after planned high-level talks in Switzerland were postponed. The delay has raised concerns about the timeline for restoring stability in the region and resuming normal oil flows through the Strait of Hormuz.
According to analysts, a stronger Indian rupee also added pressure on domestic bullion prices. The rupee strengthened to a six-week high against the US dollar, supported by improving capital inflows and positive investor sentiment in financial markets.
In international markets, Comex silver futures for July delivery declined by more than 4 per cent to around USD 63.46 per ounce, reflecting broader weakness in precious metals.
Experts noted that geopolitical uncertainty remains elevated following fresh Israeli military strikes in Lebanon, despite ongoing diplomatic efforts in the region. Investors are also closely monitoring global interest rate expectations and economic growth prospects, factors that could continue to influence bullion prices in the coming weeks.
Market participants expect volatility in silver and other precious metals to persist as developments in West Asia and global financial markets unfold.
