Silver futures fell ₹2,129 to ₹2,49,329 per kg on the MCX.
Traders stayed cautious as the proposed US-Iran peace deal remained unsigned.
Markets are now watching the US Federal Reserve and other global central banks.
Snapping a three-day rally, silver futures declined ₹2,129 to ₹2.49 lakh per kg on Tuesday, as investors turned cautious amid uncertainties surrounding the proposed US-Iran peace agreement.
On the Multi Commodity Exchange, the white metal for July delivery slumped by ₹2,129, or nearly 1%, to ₹2,49,329 per kilogram in a business turnover of 11,023 lots.
Analysts said the decline came a day after bullion prices surged on optimism that an agreement between Washington and Tehran could end months of conflict and reopen the Strait of Hormuz, a key artery for global energy trade.
1 June 2026
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"Market participants have welcomed the prospect of easing tensions in West Asia," said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, adding that the absence of a published memorandum of understanding (MoU) between the US and Iran has left traders cautious and reluctant to extend bullish bets on the metal.
In the international markets, Comex silver futures for the July contract rose marginally to $70.36 per ounce in New York.
The focus has increasingly shifted from geopolitical tensions to upcoming US monetary policy outcomes.
Investors are awaiting the US Federal Reserve's first policy decision under Kevin Warsh on Wednesday, with bullion markets watching his assessment of inflation risks and the path of interest rates, Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said.
The Bank of Japan added to the cautious mood by raising its policy rate by one per cent and signalling the possibility of further tightening, reinforcing concerns that policymakers remain focused on inflation despite signs of easing energy prices.
According to analysts, silver's next move may depend less on developments in West Asia and more on policy decisions of global central banks. Any indication of a prolonged higher-rate environment could influence precious metals.
