Silver Price Soars to Rs 1.92 Lakh/kg on Global Cues

New Delhi, Dec 10 (PTI) Silver prices saw the steepest single-day surge in nearly two months and skyrocketed by Rs 11,500 to scale a fresh peak of Rs 1,92,000 per kilogram in the national capital on Wednesday, amid robust domestic demand fuelled by global cues.

According to the All India Sarafa Association, the white metal closed at Rs 1,80,500 per kilogram on Tuesday, and gained Rs 11,500 on Wednesday in the local retail markets.

So far this year, silver prices have added Rs 1,02,300, or 114.04 per cent, from Rs 89,700 per kg on December 31, 2024.

Earlier, such a steep single-day rise in silver price was recorded on October 10 this year when the rate went up by Rs 8,500 to Rs 1,71,500 per kilogram.

Meanwhile, the price of gold of 99.9 per cent purity climbed Rs 800 on Wednesday to Rs 1,32,400 per 10 grams (inclusive of all taxes) from the previous close of Rs 1,31,600 per 10 grams.

"Gold traded with a modest gain on Wednesday, supported by a softer US dollar and firm expectations of a Federal Reserve rate cut. A cautious market tone, coupled with lingering geopolitical uncertainties, also provided an additional tailwind for the precious metal," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

In the international market, spot gold was trading 0.16 per cent lower at USD 4,201.70 per ounce.

"Gold continues to consolidate around USD 4,200 ahead of the FOMC monetary policy decision due tonight. The central bank is expected to cut rate by 25 basis points, however, focus will be on summary of economic projections and the Fed's take on inflation and job market," Praveen Singh, Research Analyst, Mirae Asset ShareKhan, said.

Spot silver climbed by 1.53 per cent to hit a record high of USD 61.60 per ounce. On Tuesday, the white metal rose USD 2.66, or 4.58 per cent, to touch a lifetime high of USD 60.82 per ounce.

It has gained USD 3.44, or 5.91 per cent, over the past two sessions, after closing at USD 58.161 per ounce on Monday.

Gandhi said silver surged to a fresh record high and extended gains after breaking above USD 60 an ounce for the first time on Tuesday, with traders betting on further monetary easing by the Federal Reserve, continued supply tightness, and strong exchange-traded fund inflows to drive the rally.

The US Federal Reserve will announce its policy decision later in the day, with market participants widely expecting a 25 basis point rate cut despite pressure on the inflation front.

He added that investors' focus will turn to the policy statement and Federal Reserve Chair Jerome Powell's press conference for signals on the future policy path, which could set the tone for the US dollar and bullion prices going forward.