On February 27, the price of silver on MCX jumped by Rs 8,000. The main reason for this was that talks between America and Iran on the nuclear issue remained inconclusive. Geopolitical tension remained intact due to this uncertainty. At the same time, the US dollar remained near its highest level for about three weeks. However, due to the strengthening of the dollar, gold prices did not rise much because gold priced in dollars becomes expensive for investors from other countries.
The price of silver on MCX increased by 3.2% i.e. Rs 8,340 to Rs 2,68,009 per kg. Whereas MCX Gold increased by 0.3% to Rs 1,60,234 per 10 grams.
No solution was found through talks
Indirect talks between America and Iran regarding the nuclear program took place in Geneva on Thursday. Oman, which was mediating, claimed that the talks went well, but even after several hours of discussion, no concrete result was achieved. Especially amid the increasing military activities in the Middle East, there was no clear indication of completely avoiding America’s possible military action. There is tension between America and Iran.
Hence the high silver prices
Both sides have warned each other after President Donald Trump ordered to increase the US military presence in the region. This uncertain environment has strengthened the prices of silver. Meanwhile, hopes of an early cut in interest rates in America appeared to be weakening. Kevin Wersh, nominated for the post of Federal Reserve Chair, may face a difficult path to immediate rate cut. The strength of the US economy, increasing confidence of company CEOs and the tough stance of the central bank have reduced expectations of a sharp rate cut.
Will silver prices go up further?
According to experts, demand for safe investments has increased amid increasing geopolitical tension and uncertainty over US trade policy, due to which gold and silver prices remain near four-week high. He said that silver has achieved the target of $ 90 (about Rs 2,66,000). Now the prices are slowly moving towards the next resistance levels of $92 (approximately Rs 2,72,000) and $93 (approximately Rs 2,75,000).
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