Silver prices on Wednesday breached the record Rs 2 lakh-per-kilogram mark in the national capital for the first time, driven by strong demand in domestic and global markets, according to the All India Sarafa Association.
The white metal jumped by Rs 7,300 to hit an all-time high of Rs 2,05,800 per kg on Wednesday, against the previous closing level of Rs 1,98,500 per kilogram.
“Silver continued its ascent with prices touching record high levels in the domestic markets as the white metal surged to hit a new peak in the international markets,” Dilip Parmar, Research Analyst, HDFC Securities, said.
So far in this year, silver prices have added Rs 1,15,300, or 127.40 per cent, since the level of Rs 90,500 per kilogram recorded on January 1, 2025.
In the local bullion market, gold prices climbed by Rs 600 to Rs 1,36,500 per 10 grams (inclusive of all taxes), compared to the previous close of Rs 1,35,900 per 10 grams, as per the association.
Renisha Chainani, Head – Research at Augmont, said the US dollar index has reached a two-month low, making greenback-priced bullion more affordable for international purchasers.
In the international markets, spot gold went up by USD 18.59, or 0.43 per cent, to USD 4,321.06 per ounce.
“Spot gold is trading with a gain of around 0.4 per cent at USD 4,320 per ounce as traders await the US Consumer Price Index (CPI) data to be released on Thursday,” Praveen Singh, Research Analyst, Mirae Asset ShareKhan, said.
Echoing similar sentiments, Dilip Parmar of HDFC Securities said gold in the global markets is hovering near the record highs as investors are monitoring the escalating geopolitical tensions in Venezuela.
He added that metal traders are closely monitoring for signals of further monetary easing following the US Federal Reserve’s third consecutive rate cut last week, a significant tailwind for non-interest-bearing assets.
Parmar further stated that investment demand from both retail and institutional sectors is expected to remain robust, which could push prices higher.
In addition, spot silver crossed the USD 66-per-ounce mark for the first time in the overseas trade. The white metal climbed by USD 2.77, or 4.35 per cent, to hit a fresh record of USD 66.52 per ounce.
“Silver extended its remarkable rally, breaking above the USD 66 per ounce level for the first time on record, driven by a combination of tight physical supply conditions, rising safe-haven demand, strong inflows into silver-backed ETFs, and growing expectations of US Federal Reserve rate cuts,” Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said.
Chainwala noted that the momentum in the white metal has been further amplified by reports that China plans to restrict silver exports from 2026, a development that could disrupt a key supply source and intensify pressure on the global market.
“With Chinese silver inventories already at their lowest levels in a decade, any export curbs risk worsening the physical squeeze, reinforcing the bullish narrative and potentially sustaining elevated prices in the near term,” she said.
During the year, silver prices have zoomed by USD 36.96, or 125.05 per cent, from USD 29.55 per ounce on January 2, 2025.
Chainwala added that spot silver’s rally has outpaced gold by gaining over 120 per cent year to date. The strength reflects a historic squeeze driven by tight supply, rising lease rates, and brighter demand prospects linked to silver’s indispensable role in the global green energy transition.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
