Silver Prices Hit Unprecedented Highs in India

Silver prices in India have reached a historic peak, surpassing Rs 1.11 lakh per kilogram in the spot market. This remarkable surge is attributed to investors flocking to safe-haven assets amidst escalating global trade tensions and anticipations of a more lenient policy from the US Federal Reserve.

Global Trends Mirror Domestic Surge

Internationally, spot silver prices climbed 0.4% to $37.19 an ounce, marking a second consecutive day of gains for precious metals. This global uptrend reflects the growing investor interest in silver, driven by geopolitical uncertainties and the potential for inflation.

Expert Insights on the Rally

"Investor appetite for silver has intensified, with exchange-traded funds seeing significant inflows and safe-haven demand resurging due to geopolitical and tariff-related risks," explained Kaynat Chainwala, AVP–Commodity Research at Kotak Securities.

Trade Policies Fueling Market Volatility

Recent announcements of aggressive tariffs by the US President have further destabilized market sentiment, with new duties on imports from Canada and Brazil set to take effect. These developments have heightened the appeal of precious metals as a hedge against inflation and economic uncertainty.

Future Outlook for Silver Prices

Analysts predict that silver prices on the MCX could test the Rs 1,14,000–1,15,000 range, with COMEX silver potentially nearing $40 per ounce. The market remains vigilant for any further geopolitical announcements that could influence precious metal prices.