Silver prices surged to an unprecedented Rs 1,32,300 per kilogram in New Delhi, marking a significant rise of Rs 300 as demand continued to soar, driven largely by increased investor interest in the metal’s industrial applications. In contrast, gold prices experienced a decline after reaching record highs, dropping by Rs 500 to settle at Rs 1,13,300 for 10 grams of the 99.9% purity variety. This decrease ended gold’s four-day winning streak, during which it had briefly peaked at Rs 1,13,800.
The market for silver has seen a remarkable increase this year, with prices soaring by Rs 42,600 per kilogram, reflecting a growth of 47.5% since the start of the calendar year when the metal was valued at Rs 89,700 per kg. Analysts suggest that this robust performance in silver is correlated with a weak US labor market, sparking expectations of a more accommodating monetary policy.
Gold, on the other hand, has shown signs of moderation. According to Saumil Gandhi, Senior Analyst at HDFC Securities, the yellow metal’s downturn is indicative of traders’ caution as they await the upcoming Federal Reserve policy meeting. Set to commence on September 16, the meeting’s outcomes are highly anticipated, particularly in light of ongoing tensions between the Trump administration and Fed officials, as well as a push for changes in the Fed’s leadership.
In global markets, spot gold prices were noted to be just above USD 3,645 per ounce, while silver was priced at USD 42.20 per ounce. This follows a strong week for gold, which maintained stability near the USD 3,650 per ounce mark.
Traders are also keeping a close eye on geopolitical developments, particularly tensions in the Middle East and NATO’s role in Eastern Europe, which may influence market perceptions and price trajectories for both gold and silver. Additionally, upcoming data releases regarding US retail sales and industrial production could further inform market strategies in the precious metals sector.
As global dynamics play a crucial role in determining precious metal prices, investors remain alert to potential shifts and trends that could affect their investments in the weeks to come.
