Silver Soars: Investors Eye Fresh Highs Amid Fed Rate Cut Speculation

Silver prices surged to unprecedented highs in the domestic futures market as investors anticipated a Federal Reserve rate cut. This demand, driven by industrial uses and geopolitical tensions, pushed silver futures to new heights, with the March contract reaching Rs 1,30,000 per kilogram.

On Friday, silver prices rallied to a historic high in the domestic futures market, driven by strong investor expectations of a Federal Reserve rate cut. The surge saw silver soar Rs 1,668, reaching a record Rs 1,30,000 per kilogram.

Significantly, the Multi Commodity Exchange (MCX) registered a major shift as March delivery futures climbed 1.3%, while December delivery futures soared 1.32%, both breaking previous records. Globally, the bullish sentiment continued, with silver futures for December delivery spiking 1.52% to USD 42.79 per ounce, marking a new 14-year high.

According to Jigar Trivedi, a Senior Research Analyst at Reliance Securities, industrial demand from sectors like solar and electric vehicles is intensifying, further tightening the silver market amid supply constraints. Market players are now pricing in a 93% likelihood of a US Fed interest rate cut, boosting safe-haven demand as geopolitical tensions persist.

(With inputs from agencies.)