- Silver prices hit a record Rs 1,94,400 per kg in Delhi on Thursday
- Silver surged 116.72% since January from Rs 89,700 per kg in 2024
- US Fed’s rate cut and weaker rupee boosted silver and gold prices
Silver prices surged Rs 2,400 to a record Rs 1,94,400 per kg in Delhi on Thursday, tracking firm global cues and a weaker rupee after the US Federal Reserve cut interest rates.
The white metal had already rallied Rs 11,500 on Wednesday to Rs 1,92,000 per kg, according to the All India Sarafa Association. Since January, silver has jumped Rs 1,04,700 or 116.72%, from Rs 89,700 per kg on December 31, 2024.
Analysts attribute the rally to robust physical and investment demand, tight supply, record global prices, and rupee weakness. “Spot silver shows strong bullish momentum and may inch towards ₹2,10,000 per kg soon,” said Dilip Parmar, Research Analyst at HDFC Securities.
Silver has outperformed gold this year, driven by global supply deficits, high demand from China, and rising industrial consumption. In Delhi, gold of 99.9% purity rose Rs 90 to Rs 1,32,490 per 10 grams.
Globally, spot silver gained for the third straight session, rising $1.06 or 1.71% to a record $62.88 per ounce. So far this year, it has added $33.91 or 117.06% from $28.97 per ounce. Spot gold fell $15.55 or 0.37% to $4,213.12 per ounce.
The Fed's 25 bps rate cut amid inflation concerns has reinforced bullish sentiment in precious metals. Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows. A weaker dollar post-cut is further supporting prices, making metals more affordable globally
'With bullion already at record highs, this policy shift adds momentum to the rally, as investors seek safe-haven assets amid economic uncertainty and inflationary pressures,' Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said.
He added that the post-cut weakening of the US dollar is further supporting gold and silver prices, as a softer greenback makes these metals more affordable for global buyers.
'The sharp rally in bullion is underpinned by structural supply deficits, robust industrial demand for silver, and sustained ETF inflows,' Hareesh V said.
(With inputs from PTI)
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