Precious metals faced considerable selling pressure at the conclusion of the trading week, pulling domestic silver prices down by Rs 5,000 per kg on Saturday, March 14. International spot silver slipped over 4 percent to hover just above the $80 per ounce threshold. The combination of intense geopolitical developments and shifting macroeconomic expectations dampened the conventional safe-haven demand for bullion.
Domestic Performance on the Multi Commodity Exchange
Trading desks on the domestic Multi Commodity Exchange reflected the global retreat. Silver futures declined 0.62 percent before concluding Friday's business at Rs 2,59,279 per kg. The sharp weekend retreat has created ripples among jewelers, industrial consumers, and retail buyers who track daily rate revisions across Indian metropolitan hubs.
Market participants expect short-term volatility to persist across trading sessions. Nirmal Bang Securities highlighted in its market report that silver prices are projected to correct further. The firm suggested that market participants could look to sell positions at 2,71,000 with a stop loss placed at 2,77,000, targeting price levels between 2,63,000 and 2,55,000.
Crude Oil Spikes and Inflation Apprehensions
The broader commodities complex remained volatile as energy costs surged. In a preceding session, silver retreated around 1.31 percent to touch $82.34 per ounce, translating to approximately Rs 2,44,696 per kg. Concurrently, West Texas Intermediate crude advanced to $96.61 per barrel, equivalent to around Rs 8,930, fueled by escalating Middle Eastern strife and mounting fears of persistent shipping interruptions.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, observed that heightened commodity fluctuations driven by rising energy costs and inflation risks have kept market participants deeply guarded. Elevated energy costs tend to sustain broad-based consumer inflation expectations, thereby complicating central bank monetary paths and prompting market players to rethink portfolio allocations across tangible commodities.
Dollar Resurgence and Middle East Developments
Silver's pullback of more than 4 percent toward $80 per ounce on Friday coincided with a resurgent US greenback. Diminishing expectations for imminent monetary easing undermined the appeal of non-yielding bullion holdings. The dollar attracted renewed capital flows as market participants sought liquid safety following significant military escalations.
The United States armed forces announced their most extensive wave of military strikes to date against Iranian targets, responding directly to ongoing maritime disruptions in the Strait of Hormuz. Because precious metals are quoted globally in the US currency, a firmer dollar makes bullion purchases considerably more expensive for holders of international currencies, amplifying downward pressure across the white metal.
