New Delhi, March 17 The price of silver rose by Rs 2,168 to Rs 2.58 lakh per kilogram in futures trading on Tuesday, ending a four-day decline, driven by renewed demand for safe-haven assets amid escalating geopolitical tensions in West Asia.
On the Multi Commodity Exchange, the silver for May delivery increased by Rs 2,168, or nearly 1 per cent, to Rs 2,58,700 per kg in a trading volume of 5,995 lots.
Silver witnessed significant volatility in the intraday session, rising by Rs 6,367, or 2.5 per cent, to reach a high of Rs 2,62,899 per kg.
Analysts attributed the rebound in silver prices to increased investor demand for safe-haven assets amid ongoing tensions in West Asia and concerns over global energy supplies.
Silver prices surged sharply by over Rs 5,000 per kg as escalating tensions in the Middle East reignited demand for safe-haven assets across global markets, said Kaveri More, a commodity analyst at Choice Broking.
She noted that potential disruptions to critical oil supply routes, particularly around the Strait of Hormuz, have kept investors on edge.
In the overseas market, silver futures for May delivery on the Comex in New York increased by 0.68 per cent to USD 81.23 per ounce, ending a four-day decline.
Silver prices rebounded to trade above USD 80 per ounce in the global markets, reflecting renewed demand for safe-haven assets after a sharp correction, said Renisha Chainani, Head - Research at Augmont.
Echoing similar views, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said that silver rose as the dollar and Treasury yields eased on lower oil prices, which helped temper inflation concerns.
Crude oil prices retreated at the start of the week following the safe passage of several tankers through the Strait of Hormuz, which helped ease immediate supply concerns.
Meanwhile, US Treasury Secretary Scott Bessent indicated that Washington is allowing Tehran to continue crude shipments through the route, while President Donald Trump is seeking international support to ensure smooth commercial activity in the waterway.
Investors are also anticipating a likely rate hold from the US Federal Reserve this week as policymakers navigate uncertainties stemming from the Iran war, Trivedi added.
"Silver's gains are further underpinned by a projected 67 million-ounce supply deficit for 2026 and strong industrial demand from the electronics sector," he said.