Silver Prices Soar on Geopolitical Relief and Dollar Softening
Silver prices in India rebounded sharply on September 3, 2026, as geopolitical tensions eased and the US dollar softened. The Indian Bullion and Jewellers Association (IBJA) benchmark rate for silver touched 2,37,790 per kilogram, a gain of 5,010 rupees or 2.15 percent from the previous day's rate.
The rebound was broad-based, with silver on the Multi Commodity Exchange of India rising to 2,38,400 per kilogram in early trade, a gain of 0.82 percent from Tuesday's settlement. Internationally, spot silver climbed 5.12 percent to $67.41 per troy ounce, as US President Donald Trump signalled openness to diplomatic channels with Iran.
The softening of the dollar and geopolitical relief were key drivers behind the price increase. The US Dollar Index fell 0.3 percent on September 3, with the USD/INR rate at 94.30, down from 94.47 on September 2. A softer dollar directly boosts the dollar-denominated price of silver on international exchanges.
The IBJA rate is the ex-GST benchmark, and a retail buyer purchasing 10 grams of silver from a jeweller will pay the IBJA rate plus 3 percent GST, which brings the effective price to approximately 2,449 per 10 grams on September 3. Hallmarked silver sold by licensed dealers carries no additional levies beyond this.
The sharp single-day gain in silver prices marks a significant shift from previous weeks, when commodity prices were distorted by war premiums embedded in the market. The geopolitical temperature has eased, and markets are interpreting this as a positive sign for silver prices.