Silver prices in India and across global markets surged to unprecedented levels on Wednesday, setting fresh all-time highs. The dramatic rally was fueled by a combination of a weakening US dollar, growing anticipation of easier monetary policy from the US Federal Reserve, and escalating geopolitical concerns, which together boosted the appeal of precious metals as safe-haven assets.
Domestic Markets: Silver Steals the Show
In the national capital, silver witnessed a staggering single-day jump. According to data from the All India Sarafa Association, the metal leaped by Rs 9,750 to hit a historic high of Rs 2,27,000 per kilogram. This marked a sharp rise from its previous session's close of Rs 2,17,250 per kg.
"Spot silver crossed the $72 level as bullion prices hit record highs in the international markets," noted Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. The performance in 2024 has been nothing short of explosive. From a level of Rs 89,700 per kg on December 31, 2024, silver has rallied by a massive Rs 1,37,300, or 153.06%, so far in the calendar year.
In contrast, gold prices in the local market saw a marginal correction. Gold of 99.9% purity slipped by Rs 50 to trade at Rs 1,40,800 per 10 grams (inclusive of all taxes), compared to Rs 1,40,850 in the prior session.
Global Bullion Rally: Gold Breaks New Ground
The momentum was even more pronounced in international markets. Gold prices achieved a significant milestone, breaching the $4,500 per ounce mark for the very first time. Spot gold rose by $41.18, or 0.92%, to settle at $4,525.96 per ounce.
"Spot gold reached a fresh record high of $4,525 per ounce in the Asian session as the US dollar remains on the defensive," explained Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan. Over just the past four trading sessions, gold has climbed $186.46, or 4.3%. On a year-to-date basis, the yellow metal has gained an impressive $1,920.19, or 73.7%, from its end-2024 level of $2,605.77 per ounce.
Drivers of the Precious Metals Boom
Analysts unanimously point to a confluence of factors powering this historic rally. "A combination of a weak US dollar, expectations of a dovish stance from the US Federal Reserve and ongoing geopolitical tensions continued to support prices," stated Saumil Gandhi of HDFC Securities.
Renisha Chainani, Head of Research at Augmont, echoed this view, adding specific triggers. "Spot silver rose to hit record $72 per ounce, fuelled by anticipation of further monetary policy easing by the US Federal Reserve and heightened geopolitical tensions," Chainani said. She also highlighted that rising tensions between the US and Venezuela have bolstered safe-haven demand for bullion. Furthermore, recent US Q3 GDP data failed to provide support to the dollar, even as markets increased bets on two potential Fed rate cuts in 2026.
Silver's rally in overseas trade extended for the fourth consecutive session, rising by $1.22, or 1.71%, to a new peak of $72.70 per ounce. Over the last four sessions, the white metal has jumped by $5.56, or 8.3%. For 2024 so far, silver has surged by a remarkable $43.73, or 151%, from its levels at the close of 2024.
The simultaneous record-breaking performance of both silver and gold underscores a broad-based shift in investor sentiment towards hard assets amid macroeconomic uncertainty and a shifting monetary policy landscape.
