Silver prices surged by ₹2,400 on Thursday, reaching a new high of ₹1,94,400 per kg in the national capital. The All India Sarafa Association said this rise was driven by a weak Indian rupee, global market trends,
and the impact of interest rate cuts by the US Federal Reserve. On Wednesday, silver had already jumped ₹11,500, touching a historic ₹1,92,000 per kg.
In the local bullion market, 99.9% pure gold prices rose slightly by ₹90 to ₹1,32,490 per 10 grams from the previous ₹1,32,400 per 10 grams.
Why Silver Prices Are Rising
Since the start of the year, silver has gained ₹1,04,700, or 116.72%, climbing from ₹89,700 per kg on December 31, 2024.
Dilip Parmar, research analyst at HDFC Securities, said the record high is due to strong physical and investment demand, tight supply, record international silver prices, and a weak rupee.
Parmar added that silver has outperformed gold this year. Factors include global supply shortages, high demand from China, and growing industrial use.
Spot silver in India is showing strong momentum and could reach ₹2,10,000 per kg soon.
Global Market Trends
Globally, spot gold fell 0.37% to $4,213.12 per ounce, while silver continued its third consecutive gain, rising $1.06 (1.71%) to $62.88 per ounce. Since December 31, 2024, silver has gained $33.91, or 117.06%, from $28.97 per ounce.
Harish V, Head of Commodity Research at Geojit Investments Ltd., said the US Federal Reserve’s 25 basis points rate cut and ongoing inflation have boosted sentiment in precious metals.
Lower interest rates make non-income-generating assets like gold and silver more attractive, encouraging new investments.
He also noted that a weaker US dollar supports higher prices, making metals cheaper for global buyers. Additional factors driving the rally include structural supply deficits, strong industrial demand, and continued inflows into silver ETFs.
