Silver prices at new high of over Rs 1.9L/kg

MUMBAI: Relentless rally in silver continued in global markets on Thursday that in turn, combined with the rupee's recent weakness, pushed up domestic prices on the MCX to an all-time high level of over Rs 1.9 lakh/kg.

In the international market, in mid-day trades, silver prices touched a new life-peak at $63.25/ounce. In the spot market in most metros the price of silver crossed the Rs 2 lakh mark during the day.

According to Hareesh V, head of commodity research, Geojit Investments, the US Fed's decision to cut interest rates reduces the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows. "The sharp rally in bullion is underpinned by structural supply deficits, robust industrial demand for silver, and sustained ETF inflows."

Additionally, after the rate cut decision, the dollar weakened further, which in turn made it cheaper to buy gold and silver, since these precious metals are globally priced in greenback. "With bullion already at record highs, this policy shift adds momentum to the rally, as investors seek safe-haven assets amid economic uncertainty and inflationary pressures."

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