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The sharp rise in silver prices has increased the turmoil in the domestic and global markets. In India, silver has made a new record of Rs 1.90 lakh per kg, while gold also seems to be successful in staying above Rs 1.30 lakh. The market is now eyeing the possible rate cut announcement by the Fed, which may bring further fluctuations in prices.
New Delhi. Silver futures prices reached a new all-time high of Rs 1,90,374 per kg in the bullion market on Wednesday. Gold also continued to trade strongly at Rs 1,30,369 per 10 grams. In the global market, silver crossed the level of $ 60 per ounce for the first time, which further strengthened the rise in the domestic market. Continuously increasing speculative trading and expectations of a possible rate cut by the US Central Bank Federal Reserve maintained positive trends in both the metals.
Silver surge in global market
In the international market, silver remained strong for the second consecutive session and rose by 1.3 percent to reach a new record of $ 61.47 an ounce. This increase is largely based on the expectation that the US Fed may announce a rate cut of 25 basis points in the meeting on December 9–10. Traveling from $50 to $60 in just 12 trading sessions indicates strong fundamentals and weak supply of silver.
Bullion shines in the domestic market
Gold and silver also showed strength on MCX, where February gold futures closed at Rs 1,30,107, up 0.11 per cent. Whereas March silver futures jumped 3.48 percent and closed at Rs 1,88,064 per kg. According to market experts, the rise in industrial metals and reduction in physical supply is becoming a big support for silver. Gold has also been successful in staying above $ 4,200 per ounce internationally.
Fed’s policy will decide the next direction
Now the eyes of the market are fixed on the statement of Fed Chairman Jerome Powell. If a rate cut is announced and the statement is positive, bullion may rise further. The dollar index is currently trading with a slight rise around 99.23, which indicates some caution. Analysts believe that both gold and silver are holding above their important support levels—$3,960 for gold and $54.40 for silver. Due to which a volatile but strong trend may be seen in the near future.
