New Delhi, June 4: Silver prices traded higher on Thursday, supported by a weaker US dollar and declining crude oil prices as investors assessed growing hopes of a diplomatic resolution to tensions involving the United States, Iran and Israel.
On the Multi Commodity Exchange (MCX), silver rose 0.3% to ₹2,63,711 per kilogram, while gold prices remained largely unchanged at ₹1,54,332 per 10 grams. In international markets, spot silver gained 0.6% to $73.13 per ounce, while spot gold advanced 0.7% to $4,461.09 per ounce.
Analysts said the decline in the US dollar played a key role in supporting precious metals. A weaker dollar makes gold and silver cheaper for holders of other currencies, often boosting demand and lifting prices.
Market participants continued to monitor developments in the Middle East, where diplomatic efforts to end months of conflict appeared to gain momentum. Although Iran’s foreign minister stated that negotiations had not yet produced significant progress, US President Donald Trump expressed optimism, suggesting that a breakthrough could be achieved in the coming days.
Additional support came from reports that Israel and Lebanon had agreed to implement a ceasefire arrangement, raising expectations of broader regional de-escalation. The easing of geopolitical tensions also weighed on crude oil prices, with Brent crude futures falling 0.69% to $97.14 per barrel and US West Texas Intermediate crude declining 0.65% to $95.40 per barrel.
Lower oil prices are closely watched by bullion investors because they can help ease inflationary pressures. Reduced inflation concerns may lessen the need for central banks to maintain high interest rates, a development generally viewed as positive for non-yielding assets such as gold and silver.
Investors also digested comments from New York Federal Reserve President John Williams, who indicated that inflationary pressures arising from the Middle East conflict were unlikely to persist over the long term. He reiterated that there was currently no need for the Federal Reserve to change its monetary policy stance.
Market experts expect precious metals to remain range-bound in the near term. According to Renisha Chainani, Head of Research at Augmont, silver is likely to trade between $72 and $78.50 per ounce. She noted that prices have recovered from the lower end of the range and could move toward the upper boundary.
With geopolitical developments, oil prices and Federal Reserve signals continuing to influence sentiment, traders are expected to closely monitor global events for clues on the next direction of precious metal prices.
