More Stories

Informist, Thursday, Apr. 2, 2026

--MCX May silver futures contract plunges 7.3% to INR 225,800 per kg 

--COMEX May silver futures contract plunges 7.8% to $70.2 per ounce 

MUMBAI – Futures contracts of silver on the Multi Commodity Exchange plunged, tracking a sharp fall in futures on the COMEX due to a strong dollar. Market sentiment was also hurt after US President Donald Trump threatened extreme military action on Iran in the coming weeks, which raised concerns about inflation and further reduced expectations of interest rate cuts by the US Federal Reserve this year. 

At 1221 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was up 0.5% at 100.1. A strong dollar makes commodities priced in the currency such as silver, less appealing for those holding other currencies, denting demand. 

At 1242 IST, the most active May silver contract on the MCX was down 6% at INR 228,861 per kilogram. The same-month contract on the COMEX was down 7% at $70.97 per ounce.

Crude oil prices rebounded after Trump's speech, reinforcing concerns about inflationary pressures, which could keep interest rates elevated and limit the appeal of non-yielding assets such as silver, SMC Global Securities said in a report.

Trump said the US would hit Iran "extremely hard for the next two to three weeks" and repeated that the US was close to completing its objective. "We will continue until our objectives are fully achieved. Thanks to the progress we've made, I can say we are on track to complete all of America's objectives shortly, very shortly," Al Jazeera quoted Trump as saying. "We are going to hit them extremely hard over the next two to three weeks. We are going to take them back to the stone ages where they belong," he said.

Trump also warned Iran of strikes on power plants if no deal was agreed. "If during this period of time, no deal is made, we have our eyes on key targets. If no deal is reached, we are going to hit every one of their electric generating plants very hard, and probably simultaneously," the report quoted Trump as saying. 

"Currently, rising oil prices heightened inflation concerns, pushing expectations of tighter monetary policy and higher yields. Market sentiment has shifted significantly, with traders now fully pricing out any US rate cuts in 2026 compared to earlier expectations of two reductions, adding pressure on gold," analysts at Kedia Advisory said in a note.  End

US$1 = INR 92.98

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Reshma Ravi

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.