Silver rate today declined on Monday, April 6, tracking a broader fall in precious metals as a stronger U.S. dollar, rising Treasury yields, and fading hopes of U.S. Federal Reserve interest rate cuts weighed on investor sentiment. The weakness came even as geopolitical tensions in the Middle East intensified, lifting oil prices and raising concerns about inflation. Gold price was also down.
On MCX, Silver rate lost around 1% to ₹2,30,465 per kg, while gold price fell 0.7%x to ₹1,48,633 per 10 gram.
In the international markets, Spot fell 1% to $72.28 per ounce, while spot dropping 1.2% to $4,620.68 per ounce, and U.S. gold futures for April delivery also slipped 0.7% to $4,647.10. Other precious metals also traded lower, spot platinum shedding 0.5% to $1,979.42, while palladium edged 0.1% higher to $1,504.34.
Why are precious metals falling?
The decline in silver and other precious metals came as the 10-year U.S. Treasury yield and the moved higher, making dollar-priced bullion more expensive for overseas buyers and reducing the appeal of non-yielding assets such as gold and silver.
The pressure on precious metals also intensified after hopes of U.S. interest rate cuts faded further. Gold had already extended its losses as the escalating war in the Middle East heightened concerns around energy supply disruptions and inflation risks. At the same time, a surprise drop in U.S. jobless claims reduced expectations that the Federal Reserve would ease monetary policy anytime soon.
Fresh U.S. labour market data also added to the pressure. According to data released by the Bureau of Labor Statistics on Friday, nonfarm payrolls in March rose by the most since the end of 2024. The stronger-than-expected jobs data is likely to reinforce the Federal Reserve’s focus on inflation risks, especially at a time when higher oil prices are adding to price pressures.
That has significantly changed interest rate expectations. Traders have now almost completely priced out any chances of a Fed rate cut this year. Before the Iran war began, markets had been expecting two rate reductions in 2026. A higher-for-longer interest rate outlook is typically negative for non-yielding assets such as gold and silver, which tend to perform better in a low-rate environment.
Geopolitical tensions also remained in sharp focus. U.S. President Donald Trump threatened to rain “hell” on Tehran if it did not reopen the by Tuesday, a critical route for global oil shipments. The continued U.S.-Israeli war with Iran has disrupted global energy supplies, keeping crude prices elevated.
opened higher on Monday and stayed above $110 per barrel, adding another layer of concern for financial markets. The jump in crude prices has heightened fears of rising inflation. While gold is traditionally considered a hedge against inflation, persistently high interest rates can offset that appeal by increasing the opportunity cost of holding non-yielding precious metals.
more to come….