Silver prices experienced the most significant single-day increase in almost two months, rising by Rs 11,500 to reach a new high of Rs 1,92,000 per kilogram, driven by strong domestic demand influenced by global factors. Reports shows that the white metal concluded at Rs 1,80,500 per kilogram on Tuesday, subsequently appreciating by Rs 11,500 on Wednesday within the local retail markets. Year-to-date, silver prices have increased by Rs 1,02,300, representing a growth of 114.04%, rising from Rs 89,700 per kg as of December 31, 2024. Previously, a significant single-day increase in the price of silver was observed on October 10 of this year, when the rate surged by Rs 8,500, reaching Rs 1,71,500 per kilogram.
Meanwhile, the price of gold of 99.9% purity increased by Rs 800 on Wednesday, reaching Rs 1,32,400 per 10 grams (inclusive of all taxes), up from the previous close of Rs 1,31,600 per 10 grams. Gold experienced a slight increase on Wednesday, buoyed by a weaker US dollar and strong anticipations of a Federal Reserve rate reduction. “A cautious market tone, coupled with lingering geopolitical uncertainties, also provided an additional tailwind for the precious metal,” stated Saumil Gandhi.
In the international market, spot gold experienced a decline of 0.16%, priced at $4,201.70 per ounce. Gold remains in a state of consolidation near $4,200 as market participants await the FOMC monetary policy decision scheduled for tonight. The central bank is anticipated to reduce rates by 25 basis points; however, attention will be directed towards the summary of economic projections and the Federal Reserve’s perspective on inflation and the labor market,” stated Praveen Singh.
Spot silver increased by 1.53%, reaching a record high of $61.60 per ounce. On Tuesday, the white metal increased by $2.66, representing a 4.58% rise, reaching a record high of $60.82 per ounce. It has increased by $3.44, or 5.91%, over the past two sessions, following a closing price of $58.161 per ounce on Monday. Gandhi noted that silver reached a new record high, continuing its upward trajectory after surpassing $60 an ounce for the first time on Tuesday. Traders are anticipating additional monetary easing by the Federal Reserve, ongoing supply constraints, and robust inflows into exchange-traded funds to sustain the rally.