Solid Gains: Silver Hits Record High Amid Interest Rate Anticipations

Silver prices reached a landmark high of Rs 1,91,800 per kg due to strong investor demand and anticipation of a US Federal Reserve rate cut. This rise was marked in the Multi Commodity Exchange, reflecting a 1.98% jump. Meanwhile, gold also showed a stable increase, highlighting a cautious market.

Silver prices surged to an unprecedented record high of Rs 1,91,800 per kilogram in the futures trade, fueled by robust investor demand and expectations of an impending interest rate cut by the US Federal Reserve. This marks the second consecutive day of upward momentum in the market.

The March contract witnessed a significant boost, climbing 1.98% to secure this all-time high on the Multi Commodity Exchange. The hike was partly driven by ongoing supply constraints. Concurrently, gold futures for February rose marginally by 0.13% to Rs 1,30,280 per 10 grams.

Renisha Chainani from Augmont noted the market's anticipation of a 25 basis point rate cut, though Fed Chair Jerome Powell is expected to adopt a cautious stance amid inflation concerns. Globally, silver continues to attract attention, with significant ETF inflows and China's sustained gold purchasing adding further weight to market dynamics.

(With inputs from agencies.)