New Delhi— Silver prices continued their meteoric rise on Wednesday, setting a fresh all-time high on the Multi Commodity Exchange (MCX), driven by robust industrial demand and favorable global market conditions.
Silver futures for July delivery climbed to ₹1,09,748 per kilogram, surpassing Tuesday’s record. The September contract surged even further, hitting ₹1,11,000 per kilogram. With these gains, silver is now trading nearly 25% higher than its all-time low of ₹88,050 per kg.
Market analysts attribute the rally to strong fundamentals, particularly a resurgence in industrial usage. They suggest silver presents a compelling medium-term investment opportunity, especially in a climate where demand is expected to remain high.
In contrast, gold prices continued to slide for a second consecutive session. August gold futures on MCX dipped 0.2% to approximately ₹99,329 per 10 grams, just days after breaching the ₹1 lakh mark for the first time in history.
As silver strengthens and gold cools, the gold-silver ratio has dropped to around 91, down from over 100 during much of April and May. This ratio, which reflects how many ounces of silver are needed to purchase one ounce of gold, is often used as a key metric to evaluate the metals’ relative value.
Analysts believe gold is currently in a holding pattern ahead of the U.S. Federal Reserve’s interest rate decision, expected later Wednesday night. Additional global factors, such as rising geopolitical tensions between Iran and Israel and ongoing trade negotiations, are also contributing to market uncertainty.
Despite the recent dip, long-term sentiment around gold remains positive. Tata Mutual Fund maintains a bullish outlook, citing sustained central bank purchases and expectations around the Fed’s monetary policy stance.
“Gold prices are consolidating in a narrow band as traders await the Fed’s announcement,” said Jateen Trivedi of LKP Securities. “On MCX, gold is fluctuating between ₹99,150 and ₹99,750, while Comex gold is hovering around $3,375.”
Trivedi added that near-term price movement for gold is expected to stay within the range of ₹98,500 to ₹1,00,500. (Source: IANS)
