On the Multi Commodity Exchange, March silver contracts advanced by Rs 1,037, or 0.42%, to Rs 2,45,305 per kg, with a trading volume of 1,589 lots. Market analysts attributed the uptick to fresh buying interest and the creation of new positions by traders.
In global markets, silver was quoted 1.46% higher at USD 78.32 per ounce in New York.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that the metal remained above the USD 77 per ounce mark after surging nearly 5% in the previous session. He said the broader metals complex rebounded even as the dollar strengthened on the back of solid US economic indicators and hawkish commentary from the Federal Reserve.
The minutes from the Fed’s January meeting showed differing views among policymakers. While traders slightly scaled back expectations of rate reductions this year, they continue to factor in two quarter-percentage-point cuts before the end of the year.
Additional support for silver and other precious metals came from escalating geopolitical risks. The US bolstered its military deployment in the Middle East amid worries over a potential confrontation with Iran, while negotiations between Ukraine and Russia ended without a significant breakthrough, further underpinning safe-haven demand.