Silver prices were flat on Wednesday, 27 May as investors awaited comments on developments around the US-Iran peace deal as well as cues on the US Fed monetary policy.
However, gains were capped as a stronger US dollar, rising crude oil prices and escalating tensions in the Persian Gulf dampened investor sentiment and reinforced fears that inflation could remain elevated for longer, potentially forcing central banks to keep interest rates high.In India, MCX silver was steady, up 0.7% to ₹2,72,628 per kg, while MCX Gold price was also flat at ₹1,57,898 per 10 grams.The precious metals market continued to react to developments in the Middle East after US and Iranian forces reportedly clashed near the Strait of Hormuz overnight.
The fresh military strikes highlighted the fragile situation between the two nations even as both sides continued to signal progress toward an interim peace agreement.Oil markets also remained highly volatile amid the geopolitical developments.
Brent crude climbed above $100 per barrel after having slumped more than 7% earlier this week, reflecting heightened uncertainty around global energy supplies and the future of shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.Meanwhile, in international markets as well, Spot gold declined 1.4% to $4,506.48 an ounce as of 3:48 p.m.
in New York, which translates to around 1:18 a.m.
IST on Thursday.
Silver fell 1.5% to $76.92 an ounce.What's driving the precious metals prices?Gold and silver remained muted as investors continued to remain cautious about inflation risks arising from higher energy prices and prolonged geopolitical instability.
The US dollar also held firm after renewed US strikes on Iranian targets reduced hopes of an immediate diplomatic breakthrough and delayed expectations around the reopening of the Strait of Hormuz.The latest exchange of strikes came only hours after US President Donald Trump said negotiations with Tehran to extend the ceasefire and reopen the strait were progressing.
However, US Secretary of State Marco Rubio indicated that discussions could still take several days before....
