Silver prices rallied high on Friday breaching the record Rs 2 lakh per kg mark in futures trade for the first time, riding on strong investor demand and positive global trends. This was the fourth consecutive day of Silver’s rise. The white metal futures for March delivery appreciated by Rs 1,420, or 0.71 per cent, to touch a lifetime high of Rs 2,00,362 per kg on the Multi-Commodity Exchange (MCX), reported PTI.
The report mentioned that in the international markets, Comex silver futures rose to scale a fresh peak of USD 64.74 per ounce.
On Silver prices, Anindya Banerjee, Head Currency and Commodity, Kotak Securities said, “The initial pace of around $40 billion in T-bill purchases starting mid-December is being viewed by markets as a form of quasi-QE.
Silver is also benefiting from a notable physical squeeze. Asian buyers are aggressively demanding physical delivery, while Western sellers are finding it increasingly difficult to meet their derivative‐linked obligations.”
In the international market, Silver trades around $64, gaining over 23% in one month and 111% so far in 2025.
Gold rallies too
Not just the white metal, but the yellow metal too performed well as the Gold prices rose to a seven-week high on Friday. Report said it was due to a soft dollar, expectations of interest rate cuts and safe-haven demand prompted by geopolitical turbulence, and the fact that silver hit a record high.
Spot gold rose 0.7% to $4,311.73 per ounce by 0945 GMT, its highest level since October 21, and set for a 2.7% weekly gain, the report mentioned. The US gold futures also gained 0.7% to $4,343.50.
Combined with a 25 bps rate cut at a time when US inflation risks are tilting higher, this has amplified concerns about faster dollar debasement. Naturally, both gold and silver have responded with strong gains.
How is Dollar performing?
Meanwhile, the dollar hovered near a two-month low, and was on track for a third straight weekly drop, making bullion more affordable for overseas buyers. The news agency quoted Zain Vawda, analyst at MarketPulse by OANDA, who said the sharp rise in US weekly jobless claims as well as U.S.-Venezuela tensions are underpinning gold and keeping haven demand strong.
The US jobless claims reportedly increased by the most in nearly 4-1/2 years last week, reversing the sharp drop seen in the previous week. This comes as the US Federal Reserve trimmed rates by 25 basis points for the third time this year on Wednesday, but hinted on additional cuts.
India, meanwhile, is witnessing widening gold discounts as demand remained subdued despite the wedding season, while high spot prices also dented demand in China.
Spot silver rose 0.5% to $63.87 per ounce, after hitting a new record high of $64.32/oz, and is headed for a 9.5% weekly gain.
(With PTI inputs)
