Silver Smashes Records, Gold Surges! US Shutdown Ends, Fed Rate Cut Hope Fuels Rally - What You MUST Know!

Commodities

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Updated on 13 Nov 2025, 07:48 am

Silver prices took the lead on Thursday, showing a stronger surge than gold. This impressive climb is largely driven by positive global economic sentiment following the resolution of the 43-day US government shutdown. As of 11:24 am, silver on the Multi-Commodity Exchange (MCX) jumped 1.7 per cent, or Rs 2,693, to trade at Rs 1,64,784 per kg, even hitting an intraday high of Rs 1,65,818. Gold also saw a gain of 0.5 per cent, or Rs 625, reaching Rs 1,27,090 per 10 grams.

The end of the US government shutdown has revived economic activity, directly boosting industrial demand, a key driver for silver. Additionally, strong hopes for a Federal Reserve rate cut in December, with polls indicating an 85% chance, are supporting precious metals. Lower interest rates reduce the cost of holding non-yielding assets like gold and silver, making them more attractive. The Indian rupee's depreciation by 7 paise to 88.69 against the US dollar further supports higher domestic metal prices, as imported gold and silver become more expensive.

Impact: This news directly impacts commodity prices in India, affecting investment portfolios and currency dynamics. Precious metal traders and investors will see opportunities due to these price movements. Rating: 7/10

Definitions: * **US government shutdown**: A situation where the US federal government ceases operations due to a failure of Congress to pass appropriation bills, leading to a temporary halt in many government services. * **Federal Reserve**: The central bank of the United States, responsible for the nation's monetary policy, including setting interest rates and managing the money supply. * **Gold-silver ratio**: A metric that compares the price of gold to the price of silver. A higher ratio indicates gold is more expensive relative to silver, often suggesting silver might be undervalued and poised for outperformance. * **Depreciated rupee**: Occurs when the Indian Rupee loses value compared to other major currencies, such as the US Dollar. This makes imports more expensive for India.