Silver Rates In India Fall Sharply To Hit Rs 2.80 Lakh; How Far Will US-Israel-Iran War Impact Silver Prices?

Silver rates in India dropped sharply by Rs 10,000 on March 12, pushing the 1 kg price to Rs 2.80 lakh in the majority of cities. However, silver prices in the country saw a steep correction despite the spot silver climbing above the $86 per ounce level.

Investors are currently balancing between safe-haven demand and a rising dollar amidst Middle East conflict. Although silver rates are volatile in March so far, experts believe that it has the opportunity to offer stronger upside potential than compared to gold.

Silver Rates In India:

1Kg silver price dropped by Rs 10,000 to Rs 2.80 lakh, while 10 grams and 100 grams of silver plunged by Rs 1,000 and Rs 100 to Rs 28,000 and Rs 2,800 respectively. Silver is down by Rs 80 in 8 grams to Rs 2,240, while 1 gram silver is priced at Rs 280 which is lower by Rs 10.

In March so far, the silver price has plunged by over 5%.

What Is Impacting Silver Prices?

As per Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA), silver is correcting from its previous session, and this is due to the recent sharp move in the metal. This correction is due to some profit-booking, but the metal still has its eyes firmly fixed on its position as both an investment and an industrial metal.

In Kamboj's opinion, for investors willing to take on slightly higher volatility, silver may offer stronger upside potential compared to gold.

How Will Silver Perform Ahead?

According to Ross Maxwell, Global Strategy Operations Lead, VT Markets, operation Epic Fury by the US and Israel on Iran has created escalation around the Strait of Hormuz. Iran's response has focused on imposing economic costs globally, rather than attempting conventional confrontation to try and put political pressure on the US to halt strikes. They are doing this by threatening or partially blocking the Strait of Hormuz through mines, missile threats, drones, and harassment of commercial shipping.

For gold and silver, Maxwell explained that precious metals tend to benefit from this kind of geopolitical uncertainty. Gold typically attracts safe haven flows as investors seek stability during conflict and inflation fears, while Silver often follows gold but moves more. For global investors, the concern is that a global energy crisis with increased energy prices creates inflationary issues like it did after the start of the Russia-Ukraine war. This could force central banks to maintain tighter monetary policy.

He added that this would put pressure on equity markets, and strain energy-importing economies, while energy exporters and commodity-linked sectors temporarily outperform, complicating diversification strategies across global portfolios.

Giving a technical outlook, Ponmudi R, CEO of Enrich Money believes that MCX Silver futures are trading around the Rs 2,67,200 level, reflecting consolidation after earlier volatility. Key support is placed in the Rs 2,58,000-Rs 2,60,000 zone, and as long as prices hold above this region, the broader bullish structure remains intact. A sustained move above Rs 2,70,000 could push prices toward Rs 2,75,000-Rs 2,80,000, while a decisive breakdown below support may accelerate downside pressure.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.