Silver prices took a sharp hit on Friday as the strengthening US dollar weighed on commodity valuations, while escalating tensions in the Hormuz region triggered concerns over rising inflation.
On the Multi Commodity Exchange (MCX), silver futures plummeted 2% to ₹2,52,304 per kilogram, marking a significant decline. Globally, spot silver dropped 0.5% to $80.36 per ounce, reflecting weakness across international markets.
The rupee-denominated decline of approximately ₹5,000 underscores the dual pressure on precious metals from currency movements. A stronger dollar typically makes commodities priced in the currency less attractive for overseas buyers, dampening demand.
However, the picture remains complex as geopolitical tensions in the Middle East have driven crude oil prices higher, raising fresh inflation concerns. This divergence highlights investor uncertainty—while safe-haven demand could support metals, economic slowdown fears from inflation may limit gains.
The Hormuz tensions have intensified discussions on supply chain disruptions and energy costs, keeping global markets on edge. Indian investors tracking MCX Silver should monitor both dollar strength and crude oil movements for directional cues.
Analysts suggest the commodity’s trajectory will depend on how quickly geopolitical risks ease and whether the dollar sustains its current momentum against emerging market currencies.
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