Gold and Silver Prices: Yellow and white metal prices surged to fresh lifetime highs today, drawing strong attention from investors and market participants. Silver, also known as the white metal, once again made history by touching an all-time high of Rs 2,87,990 per kg. It is currently trading around Rs 2,84,820 per kg, registering a sharp gain of 3.5 per cent in a single session.
The white metal rally today turned out to be quite powerful, as it gained almost Rs 10,000, thus continuing its bullish trend.
Silver set a new record of Rs 2,79,500 per kg today, Wednesday, which is the highest price in the last 10 months, an indication of the robust upward price movement.
Market analysts point out that the sharp hike in silver’s price has significantly affected the investors’ and traders’ behaviour, and they are now closely following the precious metals market amidst the volatility and the strong buying interest.
Gold Rates Today: The price of gold also kept on increasing, and it reached Rs 1,43,500 per 10 grams. The yellow metal is trading at Rs 1,43,393 per 10 grams, which means a daily rise of 0.81 per cent, at the time of writing.
The global uncertainties, heavy investment demand, and continuous attraction of the safe-haven assets are all factors that are working together to sustain the rally in both gold and silver prices.
Silver prices surge on real demand
Surendra Mehta, Secretary IBJA, says the sharp rise in silver prices should not be seen as speculative activity. He notes that silver hoarding is steadily increasing, as countries and sectors that depend on the metal continue to buy it consistently. According to Mehta, while a price correction cannot be ruled out, investors should be mentally prepared for a possible 20–21 per cent correction in silver.
He highlighted that silver was trading around $60 troy ounce just last month and has now crossed the $90 troy ounce mark. Over the past 52 weeks, silver prices have surged by nearly 225 per cent. Mehta stressed that the ongoing rally is backed by strong and genuine demand. He added that even if companies come forward to sell silver, demand is expected to remain high. Prices may see temporary corrections, but silver will still find buyers, as its fundamentals remain very strong.
Silver rally accelerates with strong weekly and monthly gains
Silver has delivered shocking numbers in a very short time. In just the last 10 trading sessions, silver prices have jumped by nearly Rs 50,000 per kg. Over the past three months, international silver prices have risen by about $41. Last month, silver surged by close to Rs 1 lakh per kg. The metal has also gained nearly 7 per cent in just one week. Overall, silver prices are up more than 35 per cent in the last month, showing strong momentum and heavy buying interest.
What’s behind the rally in silver?
- Demand for safe-haven investments has risen due to the rising tensions concerning Iran.
- The London market is experiencing a tight supply, with a multi-year deficit, as the demand is still more than the supply.
- Industrial demand is strong, especially due to the growth in the solar and electric vehicle (EV) sectors.
- Clean energy and artificial intelligence (AI) industries are demanding silver heavily.
- Strong silver demand from India and China.
- The anticipation of rate cuts by the US Federal Reserve is in favour of non-yielding assets like silver.
- The core CPI data was weaker than expected, which made a stronger case for rate cuts.
- The market is supported by the expectation that the US will implement two interest rate cuts this year.
- Rising concerns over US debt levels are adding to market uncertainty.
- Additional support after silver was granted the status of a critical mineral in the United States.
Should investors exit now as silver hits extreme highs?
Kunal Shah, Head of Research Commodities at Nirmal Bang: He believes this is the right time for investors to book profits. He says that at current price levels, investors should consider exiting their positions rather than entering new ones. According to Shah, it is important to make timely decisions in the market, as no one can perfectly predict the top or bottom. He cautions investors against being greedy, adding that buying at these elevated levels carries significant risk.
Shah also pointed out that whenever prices reach extreme highs, analysts tend to upgrade targets and fresh buying calls start emerging. He pointed that such phases often signal an exit opportunity rather than a buying opportunity.