Silver kicked off Wednesday’s trade with a sharp rally, soaring to a fresh all-time high of Rs 1,90,374 per kg, extending the strong momentum seen throughout the week. Gold also remained firm, trading above Rs 1.30 lakh at Rs 1,30,369 per 10 grams.
On the MCX, silver futures surged past the Rs 1.90 lakh mark for the first time, driven by strong cues from international markets where the metal has been hitting record levels.
Globally, silver extended its gains after breaking above $60 an ounce for the first time on Tuesday. The white metal climbed as much as 1.3% to touch a new record high of $61.4797 an ounce on Wednesday.
Analysts attribute the surge to a combination of:
• Speculative bullish positions building up ahead of the US Federal Reserve’s December 9–10 meeting
• Expectations of a quarter-point rate cut by the Fed, which would weaken the dollar
• Supply tightness in global physical markets
• Strong momentum across precious metals as borrowing costs are expected to ease
Lower interest rates generally act as a tailwind for non-yielding assets like gold and silver, making them more attractive to investors seeking safety and growth.
With both domestic and international markets setting fresh records, traders will closely watch the outcome of the Fed meeting for further cues on the direction of precious metals.
