New Delhi | Silver futures tumbled by Rs 8,766 to Rs 2.28 lakh per kg on Friday as investors dumped precious metals amid uncertainty over the US-Iran peace agreement and a broader selloff in the global markets.

On the Multi Commodity Exchange, the white metal for July delivery slumped by Rs 8,766, or 4 per cent, to Rs 2,28,806 per kilogram in a business turnover of 11,080 lots.

The metal had suffered a steep correction in the previous session, plunging Rs 14,235, or 5.7 per cent, to close at Rs 2.37 lakh per kg from Wednesday's closing level of Rs 2.51 lakh per kg.

Analysts said optimism surrounding the US-Iran peace process faded after high-level talks scheduled in Switzerland were called off, raising doubts over the implementation of measures aimed at ending hostilities.

US Vice President JD Vance postponed his visit to Switzerland.

According to reports, no Iranian delegation had been confirmed, raising fresh questions about the timeline for restoring oil flows through the Strait of Hormuz.

"MCX silver has continued its downward momentum for the fourth consecutive week, declining nearly 4 per cent on Friday," Kaveri More, Commodity Analyst at Choice Broking, said.

Renisha Chainani, Head of Research at Augmont, said: "The selloff has also been amplified by a stronger rupee, which touched a six-week high against the US dollar amid improving capital inflows and firmer investor sentiment".

In the international markets, Comex silver futures for the July contract slipped USD 2.85, or 4.3 per cent, to USD 63.46 per ounce in New York.

Analysts noted that geopolitical uncertainty persisted after Israel conducted fresh strikes in Lebanon, despite the broader framework of the US-Iran agreement.

Bullion prices are likely to remain volatile as investors assess developments in West Asia and the outlook for global interest rates and economic growth, they added