Silver Prices Slip in New Delhi Amid Economic Pressures and Stronger Rupee

Silver prices in New Delhi entered a sliding path, falling by Rs 1,600 to settle at Rs 2,13,400 per kilogram according to the All India Sarafa Association. The white metal pulled back after maintaining a steady stance for two consecutive sessions, following a prior settlement at Rs 2,15,000 per kilogram.

The broader downward movement in bullion was influenced by a combination of domestic and international economic factors. Market analysts noted that an appreciation in the Indian rupee, elevated crude oil prices, and weak global trading cues weighed heavily on investor sentiment across the national capital.

The domestic currency surged by 48 paise to close at 94.43 against the US dollar, supported by intervention from the Reserve Bank of India to contain dollar demand. While early hopes of a potential peace deal involving Iran briefly pushed oil prices down and supported precious metals, ongoing concerns over elevated crude continue to fuel inflationary pressures.

In international markets, spot silver retreated to USD 57.10 per ounce after previously touching USD 58.60 in the prior session, registering an overall daily drop of approximately 0.48 percent. Commodity experts highlighted that despite headwinds from the bond market, persistent weakness in the US dollar and Treasury yields helped limit sharper downside risks for precious metals.

Market participants are closely monitoring upcoming US economic developments and the Federal Reserve's policy meetings to gauge future direction. Commodity specialists suggest that trading behavior in the near term will largely be dictated by developments in crude oil prices and movements within the bond market.

Amid these fluctuations, physical demand and traditional practices continue to see steady engagement. In regional developments reflecting ongoing cultural customs, a devotee donated a one-kilogram silver bar to the prominent Urukunda Eeranna Swamy temple, as confirmed by executive officer Vani.