New Delhi, April 8 Silver prices surged by Rs 15,028 to Rs 2.46 lakh per kilogram in futures trading on Wednesday, driven by strong global trends and increased investor sentiment following the announcement of a two-week ceasefire by the US and Iran.
On the Multi Commodity Exchange, the silver for May delivery soared by Rs 15,028, or 6.5 per cent, to Rs 2,46,376 per kg from Tuesday's closing level of Rs 2,31,348 per kg.
Silver prices saw a notable increase on Wednesday, reflecting strong demand amid rising risk aversion. The recent escalation in US-Iran tensions has created uncertainty, pushing investors towards safe-haven assets such as gold and silver, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Despite the latest rebound, silver prices remain lower compared to levels seen before the conflict in West Asia. During this period, the metal had slumped by Rs 36,268, or nearly 13 per cent, from Rs 2,82,644 per kg recorded on February 27, 2026.
In the international market, silver futures for the May contract soared USD 5.07, or 7.05 per cent, to USD 77.06 per ounce.
Silver prices rallied over 6 per cent on Wednesday after the US and Iran announced a two-week ceasefire and the reopening of the Strait of Hormuz, triggering fresh demand for safe-haven assets, Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said.
Supportive macroeconomic factors, including a softer US dollar and the dollar Index falling below 99, further boosted momentum, he added.
On the domestic front, the Reserve Bank of India kept its key policy rate unchanged, adopting a cautious stance amid uncertainty arising from the six-week Iran conflict.
The central bank's six-member Monetary Policy Committee unanimously decided to maintain the benchmark repurchase rate at 5.25 per cent, citing risks from elevated crude oil prices, depreciation in the rupee, and supply disruptions.
Garg said that RBI's decision to hold the repo rate at 5.25 per cent while maintaining a neutral stance is largely in line with market expectations.
He noted that the West Asia conflict has pushed the Indian crude basket to an average of nearly USD 120 per barrel through April, while disruptions around the Strait of Hormuz have added freight and supply-side risks.
"The rupee has also depreciated by over 4 per cent, further amplifying imported inflation pressures. Taken together, these factors have meaningfully tilted risks to the upside," Garg added.