Silver Falls 2% In India Before US Inflation Data

Silver prices in India declined on April 9 as investors stayed cautious amid global uncertainty.
On the Multi-Commodity Exchange of India (MCX):

• Silver fell 2% (₹4,700) to ₹2,35,133 per kg
• Gold dropped 0.7% (₹1,129) to ₹1,50,647 per 10 grams

Global Precious Metals Trend

In international markets:

• Spot silver slipped 0.4% to $73.83 per ounce after recent gains
• Spot gold remained nearly flat at $4,715 per ounce
• US gold futures for June fell 0.8% to $4,739

Other metals:

• Platinum fell 0.2%
• Palladium rose 0.3%

Why Precious Metals Are Under Pressure?

Several global factors are weighing on prices:

Middle East Tensions Continue

Even after a ceasefire announcement by Donald Trump, tensions remain high.

• Israel carried out major strikes in Lebanon.
• Iran warned that peace talks may not continue.
• The Strait of Hormuz remains partly blocked, raising concerns about oil supply.

These developments pushed oil prices higher:

• Brent crude rose to $97.34 per barrel
• WTI crude climbed to $97.40 per barrel

Stronger Dollar and Rate Hike Fears

The US dollar strengthened slightly after hitting a 1-month low.

Meanwhile, minutes from the Federal Reserve meeting suggested interest rates could stay high if inflation remains strong.

Investors are now waiting for:

• US PCE inflation data
• Weekly jobless claims

Higher interest rates usually hurt gold and silver because they do not earn interest.

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Conclusion

Silver and gold are facing short-term pressure from geopolitical tensions, a stronger dollar and expectations of higher US interest rates. The upcoming US inflation data will be crucial in deciding the next move for precious metals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all related documents carefully before investing.