New Delhi

Silver futures jumped by Rs 3,132 to Rs 2.42 lakh per kilogram on Friday as traders scrambled back into precious metals after US President Donald Trump called off planned military strikes on Iran, easing concerns over geopolitical tensions.

On the Multi Commodity Exchange, the white metal climbed by Rs 3,132, or 1.31 per cent, to Rs 2,42,785 per kilogram in a business turnover of 11,251 lots.

According to analysts, market sentiment improved after Trump said he cancelled planned military strikes on Iran, arguing that negotiations had reached an advanced stage. The announcement marked a reversal from earlier threats to target Iranian oil infrastructure, which had heightened fears of a broader regional conflict.

However, traders are treating the latest developments with caution rather than conviction, observed a few marketmen.

In international markets, Comex silver futures for the July contract rose nearly 5 per cent to USD 67.07 per ounce in New York.

Silver prices in the overseas market rallied on Friday after Trump claimed a breakthrough in negotiations hours after the American President threatened to escalate the conflict by seizing control of Iran's Kharg Island, a key hub for Tehran's oil exports.

However, Iran said no final decision had been reached on the proposed deal.

Iranian foreign ministry spokesperson Esmail Baghaei said that large parts of the text under negotiation had been finalised, but Tehran would not compromise on its red lines.

"So far, Iran has not reached a final decision on the agreement," he said.

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Meanwhile, Israeli Prime Minister Benjamin Netanyahu's office clarified that it was not a party to the emerging understanding between Washington and Tehran.

Analysts said the conflicting developments have kept investors on edge, with precious metals remaining sensitive to geopolitical headlines and their potential impact on global financial markets.