Silver Surges to Record Highs; Gold Slips as Global Markets Shift

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AuthorAnanya Iyer|Published at:
Silver Surges to Record Highs; Gold Slips as Global Markets Shift
Overview

Silver prices extended their record-setting rally for a sixth straight day, climbing to ₹2,92,600 per kg in India driven by sustained domestic buying. Gold, however, retreated from its all-time peak, falling ₹1,100 to ₹1,46,200 per 10 grams. Global spot prices for both metals declined amid a stronger US dollar and fading geopolitical risk.

Indian Bullion Soars

Silver prices continued their record-breaking ascent on Friday, marking a sixth consecutive day of gains and reaching ₹2,92,600 per kilogram in the national capital. This surge, an increase of ₹3,600 for the day, is attributed to persistent buying from stockists, according to the All India Sarafa Association.

The white metal's ascent has been remarkable, showing a 20.16 per cent gain, or ₹49,100, since January 8 when it stood at ₹2,43,500 per kilogram. Silver has now delivered 22.4 per cent returns, outperforming gold for the second year running.

Gold Retreats from Peak

In contrast, gold of 99.9 per cent purity failed to sustain its record levels. The yellow metal saw a decline of ₹1,100, settling at ₹1,46,200 per 10 grams, down from ₹1,47,300 in the previous session. This slippage occurred despite a strong underlying demand for precious metals.

Global Market Reverses

International markets presented a different picture. Spot gold and silver extended their decline for the second day. Spot gold fell by 0.27 per cent to $4,603.51 per ounce, while spot silver dropped 2.26 per cent to $90.33 per ounce. This global downtrend is linked to a firmer US dollar and reduced geopolitical risk premiums following de-escalation in Middle East tensions.

Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, noted that the aversion of a US strike on Iran eased pressure on gold. Gaurav Garg, Research Analyst at Lemonn Markets Desk, added that precious metals faced headwinds from a strong US dollar and diminished expectations of an imminent Federal Reserve interest rate cut, exacerbated by robust US jobs data.

Expert Outlook

Despite short-term volatility, underlying fundamentals remain supportive for precious metals. Central bank buying and global economic uncertainty continue to bolster gold. Silver's strength is primarily derived from robust industrial demand, particularly in the green energy and electronics sectors. Garg remains constructive on the medium to long-term outlook for silver, citing ongoing supply deficits and accelerating industrial consumption as key drivers for potential future highs.

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