Silver scales Rs 1.5 lakh/kg for first time; gold hit record Rs 1,19,500/10g on safe-haven buying

Silver prices on Monday soared by Rs 7,000 to hit an all-time high of Rs 1.5 lakh per kilogram in the national capital, while gold also scaled a fresh peak of Rs 1,19,500 per 10 grams amid strong global trends as investors turned to the safe-haven asset amid concerns over a possible US government shutdown.

According to the All India Sarafa Association, the precious metal of 99.9 per cent purity climbed Rs 1,500 to touch a lifetime high of Rs 1,19,500 per 10 grams (inclusive of all taxes). It had closed at Rs 1,18,000 per 10 grams on Saturday.

In the local bullion market, gold of 99.5 per cent purity also advanced by Rs 1,500 to hit a fresh peak of Rs 1,18,900 per 10 grams, up from Rs 1,17,400 per 10 grams in the previous session.

"In the domestic market, both gold and silver reached new record highs, driven by strong bullish cues from overseas markets," said Saumil Gandhi, Senior Analyst -- Commodities at HDFC Securities.

So far this year, the yellow metal prices have risen Rs 40,550, or 51.36 per cent, surging from Rs 78,950 per 10 grams on December 31, 2024.

Silver prices, too, witnessed a sharp rally, and climbed Rs 7,000 to touch a record Rs 1,50,000 per kilogram (inclusive of all taxes), extending gains for the fourth straight session. The white metal had ended at Rs 1,43,000 per kg in the previous trade.

The white metal prices have skyrocketed by Rs 60,300, or 67.22 per cent, in the current calendar year, rallying from Rs 89,700 per kg on December 31, 2024.

Global Market Trends Boost Precious Metals

In the overseas market, both gold and silver posted robust gains. Spot gold surged 2 per cent to hit an all-time high of USD 3,831.33 per ounce, while spot silver advanced more than 2 per cent to USD 47.18 per ounce.

"Spot gold prices extended its weekly winning streak to the sixth straight week and touched a new record high, driven by trade concerns, huge ETF inflows and Fed rate cut expectations.

"Last week, US President Donald Trump announced fresh tariffs on pharma, heavy-duty trucks and furniture, which will come into effect on October 1," Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, said.

Domestic Futures Market Sees Record Gains

In the domestic futures market on Monday, gold for October delivery appreciated by Rs 1,702, or 1.5 per cent, to hit a record high of Rs 1,15,490 per 10 grams.

The December contract for the yellow metal futures rallied by Rs 1,606, or 1.4 per cent, to touch a fresh peak of Rs 1,16,497 per 10 grams on the Multi Commodity Exchange (MCX).

Silver, too, witnessed gains on the MCX. The white metal futures for December delivery bounced Rs 2,290, or 1.61 per cent, to hit a lifetime high of Rs 1,44,179 per kilogram.

The March 2026 contract for silver futures jumped Rs 2,559, or 1.78 per cent, to hit a fresh new peak of Rs 1,45,817 per kg on the commodities bourse.

Factors Driving the Rally

"Gold prices rose to hover near an all-time high, while silver breached the psychological mark of USD 45 per ounce on COMEX, supported by a weaker dollar and growing expectations that the Federal Reserve is likely to continue with interest rate cuts later this year and surge in overall demand.

"Focus now shifts to US jobs market data, ISM manufacturing PMI for further clues on the economy's health, scheduled later this week," said Manav Modi, Analyst -- Precious Metal -- Research, Motilal Oswal Financial Services.

Globally, gold futures for December delivery climbed to hit a record high of USD 3,860.45 per ounce. Silver futures for December delivery also hit a high of USD 47.39 per ounce.

"Gold and silver prices are having a stellar run. Gold reached record highs of over USD 3,800 per ounce, and we can see it is going to touch USD 4,000 per ounce in the near term.

"The rate cuts by the US Federal Reserve make it more attractive to hold non-yielding assets such as gold, with central banks still aggressively buying in. Uncertainty in geopolitics and macro risks are directing investors into safe haven asset," said Trivesh D, Chief Operating Officer at brokerage firm Tradejini.

Trivesh further said silver's rally is even more spectacular, up 55 per cent this year, trading higher than USD 46 per ounce, driven by strong industrial demand, particularly in solar panels and technology.

"Supply deficits are tightening the market further and we can even expect ballistic moves higher if demand keeps accelerating. It is a classic case of precious metals thriving when uncertainty runs high," he added.

PTI