Silver futures staged a strong recovery on Monday, surging by Rs 5,146 to Rs 2.38 lakh per kilogram, supported by firm global prices and improving investor sentiment following signs of progress in diplomatic negotiations between the United States and Iran.
On the Multi Commodity Exchange (MCX), silver contracts for July delivery climbed Rs 5,146, or 2.21 per cent, to settle at Rs 2,38,331 per kg, with a trading volume of 10,463 lots.
The September silver contract also witnessed robust buying interest, advancing Rs 5,076, or 2.13 per cent, to Rs 2,43,817 per kg in a turnover of 5,110 lots.
Market experts attributed the rebound in silver prices to easing geopolitical concerns after indications of constructive dialogue between Washington and Tehran. The developments helped calm market nerves following weeks of uncertainty and tensions in West Asia.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, said silver prices recovered in domestic markets as progress in US-Iran peace negotiations provided fresh support to precious metals. According to analysts, improving prospects for a diplomatic resolution reduced fears of a prolonged conflict and encouraged renewed interest in bullion assets.
In international markets, Comex silver futures for July delivery rose nearly 3 per cent to trade at USD 66.71 per ounce in New York, reflecting stronger global demand for the metal.
Also read: Anti-dumping duty imposed on chemical imported from China, EU, US
Kaveri More, Commodity Analyst, Technical Research at Choice Broking, said bullion prices rebounded on optimism surrounding the peace talks. However, she noted that gains remained somewhat capped as the US dollar continued to hover near a 13-month high, limiting the upside for precious metals.
Iranian Foreign Minister Seyed Abbas Araghchi described the first round of negotiations held in Switzerland as constructive and said the talks had shown signs of progress despite renewed warnings issued by US President Donald Trump.
In a post on X, Araghchi stated that restrictions on oil and petrochemical exports would be eased, blockades lifted, some frozen assets released and a major reconstruction and development programme initiated for Iran under the proposed framework.
Meanwhile, a joint statement issued by mediators revealed that both countries had agreed to establish a communication mechanism aimed at preventing incidents in the strategically important Strait of Hormuz. The two sides also agreed on a de-confliction arrangement involving Lebanon.
These developments helped reduce concerns over potential disruptions to global energy supplies, a key factor that has influenced commodity markets in recent months. The easing of geopolitical risks contributed to the positive sentiment that lifted silver prices both in domestic and international markets.
Follow us
