Silver prices extended their upward momentum on Thursday, rising over 1% in early trade, driven largely by escalating geopolitical tensions between the United States and Iran. The renewed uncertainty in global markets has prompted investors to seek refuge in safe-haven assets, boosting demand for precious metals, particularly silver, while gold prices remained relatively flat.

Key Highlights

• Silver prices climbed 1% as geopolitical tensions fueled safe-haven buying and market volatility.
• Investors track key resistance and support levels amid rising global uncertainty and mixed commodity trends.

On the Multi Commodity Exchange (MCX), silver futures climbed sharply as market participants reacted to mounting concerns over potential supply disruptions and rising geopolitical risk premiums. Analysts noted that growing instability in the Middle East has revived safe-haven buying, especially for metals traditionally considered a hedge against uncertainty. In contrast, gold prices showed limited movement as traders adopted a cautious approach ahead of key macroeconomic data releases and central bank policy signals.

Market experts highlighted that apart from geopolitical risks, industrial demand continues to provide structural support to silver prices. Silver’s dual role as both a precious and industrial metal makes it more sensitive to shifts in economic expectations, especially in sectors such as electronics, renewable energy, and electric vehicles. Any signs of supply tightness or increased manufacturing activity could further amplify price movements.

Also Read: Gold Slips Below Rs 1.58 Lakh as Silver Falls 1% on Strong Dollar

In the near term, analysts suggest that silver may witness heightened volatility, with critical resistance and support levels closely watched by traders. A sustained breakout above key technical thresholds could trigger additional buying interest. However, fluctuations in the US dollar, bond yields, and broader risk sentiment will remain crucial factors influencing price direction.

Overall, the combination of geopolitical uncertainty, robust industrial demand, and macroeconomic cues is likely to keep silver prices volatile, presenting both risks and opportunities for investors in the commodity market.