Silver Soars: Record Highs Amidst Global Demand Surge

Silver prices reached a record high of Rs 2,05,800 per kg in the national capital due to strong demand domestically and globally, while gold also saw a price increase. The rally is supported by favorable currency movements, geopolitical tensions, and potential US Federal Reserve rate cuts, driving investment demand higher.

Silver prices, for the first time, have surpassed Rs 2 lakh per kilogram in the national capital, according to the All India Sarafa Association. The soaring demand in both domestic and international markets pushed the white metal's rates by Rs 7,300, setting a new high at Rs 2,05,800 per kg.

Analysts note the significant rise in silver, up by Rs 1,15,300 since January, as linked to the plummeting US dollar index and geopolitical uncertainties. Parallelly, gold nudged upwards, climbing Rs 600 to Rs 1,36,500 per 10 grams. Globally, gold trades near record highs amid escalating tensions in Venezuela and anticipated monetary easing.

Spot silver also broke new ground internationally, breaching USD 66 per ounce, spurred by supply tightness and safe-haven demand. Potential Chinese export restrictions on silver further drive this bullish trend, underscoring silver's crucial role in green energy transitions, with prices surging over 120% year to date.

(With inputs from agencies.)