Silver Prices Drop Amid Strong Dollar and Escalating Tensions

Silver futures fell nearly 1% to Rs 2.33 lakh/kg on Wednesday due to a strong US dollar, rising US Treasury yields, and escalating US-Iran tensions.

The precious metal for December delivery declined for the fourth straight session, dropping Rs 1,841 or almost 1%, to Rs 2,33,600 per kg on the Multi Commodity Exchange (MCX).

Gaurav Garg, Head of Research at Lemonn Markets Desk, said 'Silver extended their decline in Wednesday's session as rising US Treasury yields and a stronger dollar reduced demand for assets such as precious metals.'

Elevated bond yields and higher crude prices added to inflationary pressures, which weighed on commodity rates.