Silver prices moved sharply higher on the Multi Commodity Exchange of India (MCX) on Tuesday, with futures rising more than 3% during the session amid a weaker US dollar and continued geopolitical uncertainty in the Middle East.
As of the latest update, silver futures were trading around Rs 2,75,300 per kilogram, up Rs 8,140 or about 3.05% from the previous close.
Why silver prices are rising today
One of the key drivers behind the rally is the weakening US dollar, which makes dollar-denominated commodities such as silver more attractive for international buyers. A softer dollar often supports precious metal prices as investors shift toward metals as a hedge.
Geopolitical developments are also influencing the market. Silver climbed to around $89 per ounce globally after briefly slipping below $80 in the previous session, as tensions surrounding the US–Iran conflict continue to shape investor sentiment.
Recent comments from Donald Trump, who stated that the US military operation in Iran may be nearing its conclusion and progressing faster than initially expected, have added to market volatility.
Trump also suggested that the US could waive certain oil-related sanctions and deploy the US Navy to escort tankers through the Strait of Hormuz, a move aimed at stabilising global oil supply.
Safe-haven demand supporting metals
Earlier in the conflict, the US dollar had surged on safe-haven demand as rising oil prices and geopolitical risks raised concerns about inflation and global economic disruption. However, the recent retreat in the dollar has allowed precious metals such as silver to rebound.
Beyond geopolitical factors, silver continues to benefit from strong industrial demand, particularly from sectors such as solar energy, electronics, and electric vehicles.
Volatility remains high in 2026
Silver has been one of the most volatile commodities in 2026, after touching record highs above $120 per ounce earlier in the year before correcting sharply toward the $70 range in February. Prices have since started recovering in March amid persistent supply deficits and renewed investor interest.
Market participants are now closely watching upcoming US inflation data, which could provide further signals about price trends and the broader direction of precious metals.