Silver and gold prices fall as US-Iran tensions fuel inflation fears
Silver prices dropped by over ₹8,500 per kg on Tuesday following reports of a US strike on Iran's Qeshm Island.
Silver and gold prices declined during Tuesday's trade on November 3, following reports of a US strike on Iran's Qeshm Island. According to Mint, the development increased inflation concerns and reinforced expectations that global central banks might maintain higher interest rates for a longer period.
The December silver futures contract on the MCX fell by ₹8,528 per kg to reach ₹1,75,251, its lowest level since late November 2025. This decline erased all gains made on Monday and widened the year-to-date losses for silver to 25 per cent.
Gold prices also retreated, falling nearly ₹2,079 per 10 grams to ₹1,37,863. Both precious metals have experienced volatility in November after posting losses for two consecutive months.
The rebound in crude oil prices, which rose 1 per cent, has strengthened expectations that the US Federal Reserve will keep interest rates higher for longer. Traders currently see a 75 per cent chance of a rate hike in December, according to the CME FedWatch tool.
Enrich Money CEO Ponmudi R stated that the next support for silver is placed at ₹170,000–₹172,000, with immediate resistance seen at ₹186,000–₹188,000. For gold, the next support zone lies at ₹134,000–₹135,000, while immediate resistance is at ₹140,000–₹141,000.
