Silver Price Soars to Record High in Delhi

New Delhi, Dec 11 (PTI) Silver prices jumped Rs 2,400 to a fresh all-time high of Rs 1,94,400 per kilogram in the national capital on Thursday tracking firm global cues amid weakness in the rupee and a rate cut by the US Federal Reserve.

The white metal had rallied sharply on Wednesday, rising Rs 11,500 to scale the record level of Rs 1,92,000 per kg, according to All India Sarafa Association.

Since the beginning of the calendar year, silver has climbed Rs 1,04,700, or 116.72 per cent, from Rs 89,700 per kg on December 31, 2024.

"Silver prices has reached another record high on Thursday, fuelled by robust physical and investment demand.

"The upward momentum in domestic prices has been significantly supported by a combination of tight market supply, record-breaking international silver prices, and a weaker Indian rupee," Dilip Parmar, Research Analyst, HDFC Securities, said.

He further stated that the white metal outperformed gold in terms of returns this year, due to a combination of global supply deficits, alongside consistently high demand from China and a surge in industrial consumption.

"In the domestic market, spot silver price is showing strong bullish momentum and is expected to inch towards Rs 2,10,000 per kilogram in the coming days," Parmar added.

In the local bullion market, gold of 99.9 per cent purity added Rs 90 to Rs 1,32,490 per 10 grams from the previous close of Rs 1,32,400 per 10 grams, as per the association.

Globally, spot gold fell USD 15.55, or 0.37 per cent, to USD 4,213.12 per ounce.

Spot silver gained for the third straight session, rising USD 1.06, or 1.71 per cent, to a record USD 62.88 per ounce. So far this year, the metal has added USD 33.91, or 117.06 per cent, from USD 28.97 per ounce on December 31, 2024.

"The US Federal Reserve's decision to cut key interest rates by 25 bps amid persistent inflation 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.

"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. PTI HG
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