New Delhi, March 3 -- Silver prices plunged 6.5% on Tuesday to $83.63 an ounce, reversing gains after touching a more than four-week high a day earlier. Gold price also fell paring early gains. The sharp fall in precious metals came as the U.S. dollar climbed to a one-month high, offsetting safe-haven flows triggered by an escalating U.S.-Israeli air war against Iran that has rattled global markets.

Meanwhile, spot gold retreated 1.4% to $5,252.05 an ounce by 0931 GMT, while U.S. gold futures for April delivery slipped 0.9% to $5,263.80.

The stronger dollar made dollar-denominated commodities more expensive for holders of other currencies, limiting fresh buying in precious metals despite heightened geopolitical uncertainty.

However, th...