Silver prices declined in early trade on Monday, tracking weakness in global markets as investors turned cautious ahead of major central bank policy meetings and continued monitoring developments in the US–Iran conflict.
On the Multi Commodity Exchange (MCX), silver futures fell to around Rs 255,394 per kg, down Rs 4,041 or 1.56% in early trading. Internationally, silver slipped to around $80 per ounce, marking the fourth consecutive session of declines.
Iran war and oil volatility weigh on sentiment
Precious metals markets remained volatile as the war involving the United States and Iran entered its third week. Oil prices initially surged after the United States carried out strikes on military targets near Iran’s Kharg Island, one of the country’s key oil export hubs.
Washington also warned it could target additional energy infrastructure if Iran attempts to disrupt shipping through the Strait of Hormuz, a critical route for global oil and gas supplies.
At the same time, markets are assessing reports that the United States may soon form a multinational coalition to escort commercial vessels through the Strait of Hormuz, aiming to stabilise global energy flows.
Central bank policy decisions in focus
Investors are also preparing for a series of central bank meetings this week, which are expected to shape global interest rate expectations.
The US Federal Reserve is widely expected to keep interest rates unchanged, while policy decisions are also due from the European Central Bank, Bank of England, Bank of Japan, Swiss National Bank, Reserve Bank of Australia and Bank of Canada.
Rising energy costs and inflation concerns have reduced expectations of near-term interest rate cuts, which is typically a negative factor for non-yielding assets such as precious metals.
As markets balance geopolitical tensions with monetary policy outlooks, silver prices are likely to remain sensitive to both oil price movements and central bank signals in the coming days.