Silver prices jumped up by ₹1,700 to ₹2,58,000 per kg in the local bullion market on Thursday. There was strong demand in the market along with positive international trends, while speculators monitored geopolitical developments and foreign exchange rates.

According to the All India Sarafa Association, the price of silver jumped up by ₹1,700, or roughly one percent, to ₹2,58,700 per kg (all-inclusive) from ₹2,57,000 per kg earlier.

On the other hand, the price of gold dropped by ₹200 to ₹1,57,800 per 10 grams (all-inclusive). On Wednesday, the price of gold had closed at ₹1,58,000 per 10 grams.

Saumil Gandhi, Senior Analyst at HDFC Securities, said, "Gold traded in a narrow range on Thursday, reflecting mixed market signals. Ongoing instability around the Strait of Hormuz supported safe-haven demand for the dollar, which acted as a major headwind for the precious metal."

He said that a recovery in the dollar and US bond yields further capped the precious metal's gains. However, expectations of renewed diplomatic engagement between the US and Iran improved overall risk sentiment. Analysts also pointed to reports that the two sides may extend the ceasefire by another two weeks to allow more time for negotiations.

This development kept crude oil prices near recent lows, alleviating immediate inflation concerns and halting a sharp fall in bullion. In the international market, spot silver rose nearly one percent to $79.61 an ounce, and gold rose $18.36, or 0.38 percent, to $4,809.16 an ounce.

Spot gold hovered around $4,811 an ounce amid hopes that Israel and Lebanon would agree on a ceasefire, said Praveen Singh, head of commodities at Mirae Asset Sharekhan.