Silver prices in India reached a record high on Friday, crossing Rs 1.11 lakh per kilogram in the spot market. This jump in price is mainly because more people are buying silver as a safe investment due to rising global trade tensions and the possibility of interest rate cuts by the US Federal Reserve.
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What’s Happening?
- On the Multi Commodity Exchange (MCX), silver futures crossed Rs 1.10 lakh/kg in early trading.
- In physical markets, silver was selling at Rs 111 per gram—the highest price ever in India, according to the report.
- Internationally, silver also rose by 0.4% to $37.19 an ounce, following a trend of increasing prices for precious metals.
Why Are Silver Prices Rising?
Experts say there are a few key reasons:
- Safe-Haven Buying: Investors are looking for safer assets like silver due to global uncertainty, especially after US President Donald Trump announced heavy tariffs:
- 35% on Canadian goods
- 50% on imports from Brazil
- More trade-related announcements are expected soon, especially about Russia.
- Fed Policy Speculation: Trump’s push for the Federal Reserve to cut interest rates has led to fears of rising inflation, which often increases demand for precious metals like silver and gold.
- Strong Demand: Exchange-traded funds (ETFs) are seeing more people invest in silver, increasing its demand.
- Silver’s Dual Role: Silver is both a precious metal and an industrial metal, which means it gets support from both investors and industries.
Expert Predictions
- Kotak Securities believes silver prices on MCX could rise to Rs 1.14-1.15 lakh per kg.
- On the international market (COMEX), silver may go up to $40 per ounce soon.
- Technical analysis shows the next resistance level for silver globally is $37.40–37.55, while support levels are at $36.60–36.85.
Gold Prices Also Climbing
- On Thursday, gold futures also increased slightly, closing at Rs 96,691 per 10 grams.
- Experts say gold is also benefiting from similar global conditions.Read more: Gold Prices on the Edge as Dollar and US Rates Hold the Key, Says Emkay Wealth
Final Note
The sudden rise in silver prices is mainly due to uncertain global politics, expectations of lower interest rates, and high investor demand. Experts suggest keeping an eye on new announcements, especially from the US, which could further affect silver and gold prices.
