New Delhi: Silver prices On Friday, rose by ₹8,500 to a record ₹1,71,500 per kilogram in the national capital. This was the biggest one-day rise in silver prices in a long time. The significant rise was due to steady inflows of safe-haven money, a tightening of global supplies, and growing interest from investors in precious metals.
The All India Sarafa Association says that silver ended at ₹1,63,000 per kg on Thursday, which is a huge ₹17,500 increase over the prior three trading sessions.
Meanwhile, gold prices plummeted from their all-time highs. The price of 10 kilos of gold with 99.9% purity declined by ₹600 to ₹1,26,000, and the price of 10 grams of gold with 99.5% purity fell to ₹1,25,400.
On Thursday, both groups finished at record highs of ₹1,26,600 and ₹1,26,000 per 10 grams, respectively.
Dilip Parmar, a research analyst at HDFC Securities, said, “Gold and silver have regained their dominance after a break on Thursday, thanks to a weaker dollar and widespread fear of risk.”
He went on to say, “Globally, the possibility of a Federal Reserve rate cut has made U.S. Treasury yields less attractive and the dollar less appealing, which has increased demand for gold.”
According to Manav Modi, an analyst at Motilal Oswal Financial Services who studies precious metals,
“Silver has entered steep backwardation, which means that supply is very tight and demand is rising.”
He went on to say that premiums in the domestic physical market have gone up a lot, which has caused prices of silver ETFs, futures contracts, and exchange prices to be different.
A Look at the Global Market
Spot gold went up 0.42% to USD 3,992.80 per ounce, and spot silver went up 1.52% to USD 50.01 per ounce. On Thursday, silver temporarily broke beyond the USD 51 per ounce milestone, which was its highest level ever.
Analysts said that dovish indications from the U.S. Federal Reserve’s September meeting minutes, which hinted at the likelihood of two rate cuts this year, had made people feel better about precious metals.
The U.S. government shutdown, which is now in its second week, has also made the market more volatile by delaying the publication of important data. These things, along with geopolitical tensions, strong ETF inflows, and central bank gold purchases, keep bullion prices high.
The U.S.-based Silver Institute predicted a fifth straight year of supply shortages in 2025, which adds to the positive prognosis. This shows that there are structural limitations in the global silver market.
Experts think that the metal’s rising trend could continue in the near future because of possible Fed rate reduction, worry about the U.S. economy, and low silver supplies. This could happen until global risk sentiment improves a lot.