Record Highs: The Silver Surge and Global Market Trends

Silver prices fell in futures trade after reaching record highs, influenced by traders booking profits amidst weak global signals. Gold prices also dipped, as did international market silver futures. Analysts highlight silver's supply tightness and speculative buying, while investors are reconsidering silver's value beyond traditional uses.

Silver prices experienced a pullback on Thursday, declining by Rs 751 to settle at Rs 2,06,684 per kg in futures trading, as traders opted to book profits in response to weak global market cues.

On the Multi Commodity Exchange, silver futures set for March 2026 saw a dip of Rs 751, or 0.36%, after an impressive surge of Rs 10,078, hitting a previous session's high of Rs 2,07,833 per kg. The gold market mirrored this trajectory, with February contracts easing by Rs 580, or 0.43%, to Rs 1,34,314 per 10 grams.

Experts suggest the retreat in precious metals is tied to global influences. Internationally, Comex gold futures dropped by USD 12.6, or 0.29%, to USD 4,361.3 per ounce, while silver futures for March delivery fell by USD 1.18, or 1.76%, to USD 65.72 per ounce. Silver's phenomenal climb, partly due to a rise in backwardation and robust speculative buying, signals its shifting perception from a traditional to a strategic asset.

(With inputs from agencies.)