Is Silver Reaching New Heights Amid Global Tensions?
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Synopsis
Discover how silver prices have soared to unprecedented levels amidst geopolitical tensions. As investors turn to safe-haven assets, this article explores the implications for the market and the factors driving these changes.
Key Takeaways
- Silver futures reached an all-time high of Rs 1,09,250 per kilogram.
- Investor interest in safe-haven assets is increasing due to geopolitical tensions.
- The price of gold also saw a slight uptick amid market fluctuations.
- Consumer demand for precious metals is likely to remain strong as long as geopolitical risks persist.
- Market analysts predict a bullish trend for silver in the near future.
Mumbai, June 17 (NationPress) Silver futures traded on the Multi Commodity Exchange (MCX) soared to a remarkable all-time peak of Rs 1,09,250 per kilogram on Tuesday, as investors flocked to safe-haven assets due to escalating tensions between Israel and Iran.
The silver contract for July 2025 surged by 2.5 percent, gaining Rs 2,686 from the previous closing of Rs 1,06,564 per kilogram.
In the evening session, silver futures were recorded at 2.23 percent higher at Rs 1,08,945 per kilogram, as per official MCX data.
This significant increase in silver prices mirrors the growing uncertainty in the global financial landscape, prompting investors to move away from high-risk investments like equities and gravitate towards safer alternatives such as gold, silver, and government bonds.
Gold futures also experienced a rise during Tuesday's trading. The August 5, 2025 gold contract slightly increased by 0.02 percent to Rs 99,202. Previously, gold had settled at Rs 99,178 per 10 grams.
As reported by the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by Rs 226 to Rs 99,147 per 10 grams, down from Rs 99,373.
Similarly, the price of 22-carat gold decreased to Rs 90,819 per 10 grams from Rs 91,026, and 18-carat gold also dropped from Rs 74,530 to Rs 74,360 per 10 grams.
Experts point to the rise in precious metals as a response to global uncertainty and the market's anticipation of the US Federal Reserve's forthcoming interest rate decision.
"Given the current macro environment, geopolitical tensions, currency fluctuations, and potential shifts in central bank policies, silver's attractiveness as a hedge is increasing," stated Apurva Sheth from SAMCO Securities.
"Interest from both retail and institutional investors is on the rise, and technically, the market conditions are extremely bullish," he added.
On the global stage, gold and silver prices were trending in opposite directions. As of the report, gold on COMEX had dropped by 0.40 percent to $3,404.67 per ounce, while silver saw an increase of 1.65 percent to $37.055 per ounce.
Since the beginning of the year, the price of 24-carat gold has climbed by Rs 22,985 or 30.17 percent, from Rs 76,162 to Rs 99,147 per 10 grams.
Concurrently, silver has appreciated by Rs 19,543 or 26.83 percent, rising from Rs 86,017 to Rs 1,09,100 per kilogram.
The surge in prices for both gold and silver indicates heightened apprehension among investors regarding global instability and the ongoing conflict in the Middle East.
Market analysts suggest that as long as geopolitical risks remain high, the demand for precious metals will likely continue to be robust.
Point of View
I believe that the current trends in precious metals reflect genuine investor concerns. The geopolitical landscape is becoming increasingly complex, and as a result, people are seeking stability through safe-haven assets. We must continue to monitor these developments closely.
NationPress
17/06/2025
Frequently Asked Questions
What caused the rise in silver prices?
The surge in silver prices is largely attributed to increasing geopolitical tensions, particularly between Israel and Iran, which has driven investors towards safe-haven assets.
How do geopolitical tensions affect gold and silver prices?
Geopolitical tensions create uncertainty in the financial markets, prompting investors to move away from riskier assets and invest in precious metals like gold and silver.
What is the outlook for precious metals amid current market conditions?
As long as geopolitical risks remain high, the demand for precious metals is expected to stay strong, providing a hedge against instability.
How much has silver increased in price this year?
Since January 1, the price of silver has risen by Rs 19,543, which is approximately 26.83 percent.
What impact do interest rates have on precious metal prices?
Interest rate decisions by central banks can significantly impact precious metal prices, as lower rates typically increase the attractiveness of these assets.
