Silver prices rallied to an all-time high on Friday hitting ₹2 lakh per kilo mark in futures trade, riding on strong demand from investors and positive global cues.
Rising for the fourth consecutive days, the white metal futures for March delivery on MCX rose by ₹1,420, or 0.71 per cent, to touch ₹200,362.
In the spot market, silver rallied by ₹5,100 to hit a new peak of ₹1,99,500 per kilogram in Delhi on Friday, according to the All India Sarafa Association. In Calcutta, prices also rallied to ₹194,200 a kg on Friday compared with ₹189,300 on Thursday.
“In the domestic market, spot silver prices once again recorded a new high, while gold prices also appreciated significantly, trading near the record level,” Dilip Parmar, research analyst, HDFC Securities, said.
Silver prices notched up a gain of over 10 per cent this week alone and it has more than doubled this year, supported by strong industrial demand, dwindling inventories and its inclusion on the US critical minerals list.
“Silver is supported by industrial demand amid fears of shortages, a continued tight market, and the speculative frenzy, mostly from retail investors which has helped drive inflows to Silver ETFs,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold keeps pace
Prices of the yellow metal reached a seven-week high in the international market, bolstered by a soft dollar, expectations of interest rate cut and safe haven demand.
In Delhi’s bullion market, gold of 99.9 per cent purity increased by ₹1,110 to ₹1,33,600 per 10 grams (inclusive of all taxes) compared with the previous close of ₹1,32,490 per 10 grams.
“Gold prices commenced an upward trajectory following a period of consolidation over the past few days. This surge in the precious metal was primarily supported by a weakening rupee and sustained investment demand,” he added.
In the international markets, spot gold appreciated by $58.61, or 1.37 per cent, to $4,338.40 per ounce.
“Gold and silver have responded with strong gains after a 25 basis points rate cut by the US Federal Reserve at a time when inflation risks are tilting higher. This has amplified concerns about faster dollar debasement,” Anindya Banerjee, head currency and commodity, Kotak Securities, said.
