On April 2, 2023, silver prices on the Multi Commodity Exchange (MCX) dropped by 4.48%, hitting an intraday low of ₹224,500. This decline was largely attributed to US President Donald Trump's remarks regarding Iran, which escalated geopolitical tensions and increased market volatility. Silver futures for May 5 experienced a sharper decline of 7.8%, or ₹19,001, from the previous session's close. Throughout the trading day, prices peaked at ₹242,800, reflecting a 0.28% decrease compared to the previous day's closing price.

In the global market, spot silver fell by USD 5.49, or 7.32%, to settle at USD 69.57 per ounce. Analysts suggest that Trump's speech shifted market expectations from a potential ceasefire to concerns about an extended conflict, prompting investors to prioritize cash holdings over precious metals. This shift, combined with expectations of elevated US interest rates, strengthened the dollar and increased real bond yields, further pressuring silver prices. Jigar Trivedi, a Senior Research Analyst at IndusInd Securities, predicts that MCX silver futures may drop to ₹220,000 per kilogram and advises investors to consider short positions during price rallies.