Silver Prices Surge on Weaker Dollar and Fed Decision
Silver prices rose by 1.14% to ₹219,967 on Thursday, thanks in part to a weaker US dollar and investors' reaction to the Federal Reserve's decision to keep interest rates unchanged.
The Fed maintained its benchmark rate despite dissent from three FOMC members who voted for an immediate rate hike, with Chair Kevin Warsh cautioning that the pause should not be misinterpreted as reduced commitment to tackling inflation. Markets now assign a 67% probability of a 25-basis-point rate hike in September, up from 56% a day earlier.
Safe-haven sentiment also strengthened following the US's launch of fresh strikes against Iran, which raised concerns over potential disruptions to global energy supplies and renewed inflationary pressures. In other economic data, the US economy expanded at an annualized 1.5% in Q2 2026, slower than the previous quarter's 2.1%, while the PCE price index declined 0.1% month-on-month in June.
In India, silver imports plummeted by 87% year-on-year by value and 94% by volume to just 33 tonnes in May after the government tightened import restrictions and raised import duties to 15%. Technically, the market witnessed fresh buying, with open interest rising 0.09% to 12,759 contracts alongside higher prices.