The precious metals market witnessed a historic surge this week as silver futures on the Multi Commodity Exchange (MCX) soared to a fresh peak of ₹2,87,990 per kilogram, while gold futures climbed to a new lifetime high of ₹1,43,173 per 10 grams. This remarkable rally underscores the growing investor appetite for safe-haven assets amid heightened geopolitical tensions and expectations of monetary easing by the US Federal Reserve.
Silver’s Meteoric Rise
Silver has been the star performer, appreciating nearly 14% in just four trading sessions, rising from ₹2,52,725 per kg to ₹2,87,990 per kg. Contracts for May and July deliveries have also touched record levels, with prices crossing ₹3,01,000 per kgNews18. Analysts attribute this surge to:
- Global monetary policy shifts: Softer-than-expected US inflation data has strengthened expectations of interest rate cuts, boosting demand for precious metals.
- Industrial demand: Silver’s critical role in renewable energy technologies, electric vehicles, and electronics continues to drive structural demand.
- Supply constraints: Persistent deficits in global silver supply have added to the bullish momentum.
Gold at Lifetime High
Gold futures for February delivery rose by ₹932 to hit ₹1,43,173 per 10 grams, extending gains for the fourth consecutive session. The yellow metal has benefited from:
- Safe-haven demand amid geopolitical crises in Venezuela and Iran.
- Currency depreciation pressures, which make gold more attractive in rupee terms.
- Global investor sentiment, with funds flowing into gold ETFs and bullion markets.
Market Outlook
Experts believe that silver could soon test the ₹3 lakh per kg mark, while gold may aim for ₹1.5 lakh per 10 grams in the near term. However, volatility is expected to persist, and investors are advised to remain cautious while capitalizing on opportunities.
Risks and Considerations
- Geopolitical tensions may cause sharp swings in prices.
- Profit booking by traders could lead to short-term corrections.
- Currency fluctuations remain a key factor influencing domestic bullion prices.
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Conclusion:
The rally in silver and gold highlights the resilience of precious metals as a hedge against uncertainty. With silver scaling new peaks and gold achieving lifetime highs, investors are reminded of the enduring value of these assets. Strategic guidance from trusted research analysts like Eqwires can help traders and investors make informed decisions in this dynamic environment.
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