New Delhi, March 11 Silver prices plummeted by Rs 4,269 to Rs 2.73 lakh per kilogram in futures trading on Wednesday, as a strong US dollar weighed on the precious metal despite ongoing geopolitical tensions in the Middle East.
On the Multi Commodity Exchange, silver for May delivery fell by Rs 4,269, or 1.54 per cent, to Rs 2,73,581 per kilogram in a trading volume of 5,839 lots.
Analysts said that the white metal remained under pressure as investors shifted their focus to the US dollar, which tends to influence demand for non-yielding assets such as precious metals.
Globally, Comex silver futures for the May contract fell by USD 2.03, or 2.3 per cent, to USD 87.55 per ounce.
"Silver prices are currently influenced by competing macroeconomic forces. On one side, escalating geopolitical tensions in the Middle East are sustaining demand for safe-haven assets. On the other hand, the strengthening US dollar and rising Treasury yields are limiting the metal's upside," said Renisha Chainani, Head of Research at Augmont.
She added that tensions in the Middle East continue to keep investors cautious as military developments in the region intensified.
Meanwhile, the United States and Israel have stepped up airstrikes on Iran, with analysts describing them as among the most aggressive attacks of the conflict so far.
These developments have dampened earlier expectations of a near-term ceasefire, despite President Donald Trump suggesting that the conflict could conclude soon, Chainani added.