Silver Surges to New Heights Amidst Global Market Waves

Silver prices have reached unprecedented levels, achieving a fresh peak on the Multi-Commodity Exchange. Contributing factors include strong global trends, a rate cut by the US Federal Reserve, and geopolitical uncertainty bolstering its safe-haven appeal. Sales are further driven by industrial demand and tightening global supply.

Silver prices continued their record-breaking ascent, reaching new heights of Rs 1,93,720 per kilogram on the Multi-Commodity Exchange (MCX) amidst favorable global trends and a recent rate cut by the US Federal Reserve. The precious metal has grown significantly, experiencing a surge of 122.07 percent since the end of 2024.

As the US central bank reduced interest rates by 25 basis points, the ripple effect cascaded across financial markets. While gold futures experienced moderate gains, silver's allure as a safe haven was bolstered by geopolitical uncertainties. Market analysts underscored its burgeoning demand in industries such as solar, electric vehicles, and electronics.

The silver rally was further propelled by tightening global supply and persistent investor interest. Analysts noted the concurrent appreciation of silver ETFs, emphasizing their role as unsung heroes in a year marked by volatile equity markets. Silver's singular appeal continues to capture investor attention amidst fluctuating economic landscapes.

(With inputs from agencies.)