Silver prices have surged to unprecedented levels in both domestic and international markets, driven by strong global trends and low trading volumes typical of the year-end period. The All India Sarafa Association reported that in the national capital, silver prices increased by Rs 9,350, reaching a record Rs 2,36,350 per kilogram. This marks a significant rise from Rs 2,27,000 per kilogram in the previous session. Over the last four trading days, silver has gained Rs 32,250, representing a remarkable increase of 15.8% from Rs 2,04,100 per kilogram on December 19. Gold has also seen a rise, achieving a new high of Rs 1,42,300 per 10 grams.
Domestic Silver Prices Reach New Heights
In the domestic market, silver’s impressive climb has been a highlight of the trading week. The significant price increase of Rs 9,350 on Friday brought it to a record Rs 2,36,350 per kilogram. This surge is part of a broader trend, as silver has gained Rs 32,250 in just four trading sessions. The increase stands at 15.8% from Rs 2,04,100 per kilogram recorded on December 19. Throughout the calendar year, silver has experienced a remarkable increase of Rs 1,46,650, or 163.5%, from Rs 89,700 per kilogram at the end of 2024. Analysts attribute this rally to a mix of global market cues and seasonal trading patterns.
Gold Prices Also on the Rise
Gold prices have followed an upward trend, with the precious metal of 99.9% purity climbing by Rs 1,500 to hit a new lifetime high of Rs 1,42,300 per 10 grams. This increase is notable compared to Rs 1,40,800 per 10 grams in the previous session. Year-to-date, gold has gained Rs 63,350, or 80.24%, from Rs 78,950 per 10 grams at the end of 2024. Saumil Gandhi, a Senior Analyst at HDFC Securities, observed that the rally in precious metals continued strongly on the last trading day of the week, with both gold and silver achieving record highs.
International Market Trends
In international markets, gold also reached new heights, with benchmark spot gold rising by $50.87, or 1.13%, to a record $4,530.42 per ounce. This surge is attributed to expectations of a Federal Reserve rate cut and a generally positive sentiment in the commodities market. Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, explained that thin trading conditions due to the holiday season have intensified price movements. Silver followed suit, with spot silver climbing $3.72, or 5.18%, to a new high of $75.63 per ounce, breaking the $75 per ounce barrier for the first time.
Factors Supporting Silver’s Growth
Analysts have pointed out several structural factors contributing to the rise in silver prices. Jigar Trivedi, a Senior Research Analyst at Reliance Securities, noted a multi-year supply deficit, where global mine output has not kept pace with demand and has seen declining above-ground inventories. This structural tightness in the physical market could potentially push prices even higher if deficits worsen. Furthermore, silver’s significance in various sectors, including solar panels, electric vehicles, and clean technology, bolsters its value. Trivedi remarked that a weak U.S. dollar alongside increasing demand for safe-haven assets could drive silver prices toward $100 per ounce by 2026.
Digihunt is not a financial advisor and this is not investment advice.