Silver Prices Hit Lifetime High of Rs 2.71 Lakh/Kg
Silver prices surged by Rs 6,000 to hit a fresh lifetime high of Rs 2,71,000 per kg in the national capital on Tuesday, and gold climbed to yet another record of Rs 1,45,000 per 10 grams amid sustained buying by the stockists.
According to the All India Sarafa Association, the white precious metal extended its gains for the third consecutive day by jumping Rs 6,000, or 2.3%, to Rs 2,71,000 per kilogram (inclusive of all taxes).
Gold Prices Also Hit New Highs
Gold of 99.9% purity also rose by Rs 400 to hit a fresh record of Rs 1,45,000 per 10 grams (inclusive of all taxes) on Tuesday. In the previous session, the yellow precious metal had climbed Rs 2,900 to reach Rs 1,44,600 per 10 grams.
Traders attributed the surge to sustained demand for safe-haven assets amid heightened geopolitical uncertainty.
Global Market Trends
In the global markets, spot gold eased by $10.93, or 0.24%, to $4,586.49 per ounce, after touching a record of $4,630.47 per ounce on Monday.
Spot silver was traded 0.58% higher at $85.64 per ounce in the overseas trade. The white metal had surged by $6.3, or 7.9%, on Monday to scale a fresh peak of $86.26 per ounce.
What’s Driving the Rally?
According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, the record-breaking rally in precious metals continues, underpinned by persistent safe-haven demand that is sustaining the broader bullish trend in bullion, driven by prolonged geopolitical tensions, most recently centred on Iran.
Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, added that a joint statement was issued by a coterie of former Federal Reserve chairs, Treasury secretaries, and economists criticising the Department of Justice’s probe into Fed Chair Jerome Powell, which has helped temper fears over the central bank’s autonomy, leading to profit-taking in gold.
Technical Analysis
Gaurav Garg, Research Analyst at Lemonn markets desk, said that silver leads commodity gains, surging to around $86.60 per ounce level, amid sustained investment demand and technical strength.
The US dollar index is trading near resistance levels and has lent support to bullion prices by eliminating depreciation headwinds, he added.
Key Takeaways for Indian Investors
Indian investors looking to invest in precious metals should keep a close eye on global market trends and geopolitical developments.
For more information on how to invest in gold and silver investing strategies, check out our detailed guides.
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