MUMBAI, India — Silver prices surged to fresh all-time highs on Wednesday, extending a strong rally as global cues and growing expectations of interest rate cuts fueled demand for the precious metal.
On the Multi Commodity Exchange, silver jumped more than 4% in early trade, continuing its recent breakout. MCX silver was trading about 3.38% higher at Rs 2,04,445 per kg after touching a lifetime high during the session.
Gold prices, however, showed some weakness. MCX gold for February delivery slipped 0.21% to Rs 1,34,129 per 10 grams.
Market experts said a sustained move above Rs 1,35,500, supported by renewed strength in the USD/INR pair, could strengthen bullish momentum in gold and open the next expansion zone between Rs 1,36,000 and Rs 1,38,000. They added that the broader bullish structure remains intact as long as prices stay above the Rs 1,33,000–Rs 1,32,600 support range.
In international markets, silver also saw a sharp rally. Spot silver jumped 2.8% to a record high of $65.63 per ounce, crossing the $65 mark for the first time. Spot gold was trading marginally higher at $4,321.56 per ounce by 0230 GMT, supported mainly by a weaker U.S. dollar.
The surge in silver prices followed weak U.S. labor market data, which strengthened expectations of interest rate cuts by the Federal Reserve. Data showed the U.S. unemployment rate rose to 4.6% in November, pointing to a slowdown in the labor market.
The outlook boosted demand for non-yielding assets such as precious metals, especially after the central bank signaled a dovish stance following its final quarter-point rate cut of the year.
Geopolitical tensions also contributed to the rally. U.S. President Donald Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, escalating pressure on President Nicolas Maduro amid reports of increased military activity in the region. The development lifted safe-haven demand, further supporting silver prices. (Source: IANS)
