New Delhi, March 3 -- Silver prices plunged 11% on Tuesday, 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 3%.

At the time of writing, Comex silver fell 9% to $81.66 an ounce after climbing to a more than four-week high on Monday. Meanwhile, Comex gold was down 2.6% at $5,172 an ounce

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