Silver prices on MCX surged on Monday, May 25, with July futures rising Rs 3,954 or 1.45% to Rs 2,75,800 per kilogram in early trade, recovering after last week’s sharp correction amid easing geopolitical concerns in the Middle East.
International silver prices also climbed toward $78 an ounce as markets reacted to increasing optimism surrounding a potential US-Iran agreement. Reports suggested that the proposed deal could eventually reopen the Strait of Hormuz, reduce hostilities, unlock frozen Iranian assets, and pave the way for further negotiations related to Iran’s nuclear program.
However, uncertainty still remains after US President Donald Trump stated that the blockade of the Strait of Hormuz would remain in place until a formal agreement is finalized.
Despite Monday’s rebound, silver prices remain nearly 17% lower compared to levels seen before the recent Middle East conflict intensified. The earlier decline was driven by fears that higher energy prices could trigger an inflation shock globally, forcing central banks to maintain tighter monetary policy for a longer period.
Investors are also closely tracking signals from the US Federal Reserve. Fed Governor Christopher Waller recently indicated that he no longer believes the central bank should maintain an easing bias in its policy outlook, adding further uncertainty around future interest rate direction.
In the domestic commodities market, silver continued to witness strong volatility as traders balanced geopolitical developments, inflation concerns, crude oil movements, and expectations around global monetary policy.
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