Silver hits record Rs 1.11 lakh/kg in India: What's fueling the rush to safe haven?
surged to an all-time high on Friday, breaching Rs 1.11 lakh per kilogram in the spot market as traders ramped up safe-haven buying amid mounting
global trade tensions
and rising expectations of a dovish tilt from the U.S. Federal Reserve.
On the
Multi Commodity Exchange
(MCX), silver futures crossed Rs 1.10 lakh per kilogram in early trade, while in the physical spot market, silver traded at Rs 111 per gram, or Rs 1,11,000 per kilogram, the highest ever recorded in India.
The rally followed a second straight session of gains for precious metals globally, with spot silver rising 0.4% to $37.19 per ounce in international markets, per Reuters.
The surge in the grey metal prices comes on the heels of escalating trade uncertainty after U.S. President Donald Trump announced sweeping tariffs. 'Gold and silver prices rose on Thursday, marking a second consecutive session of gains as investors sought safety amid mounting trade tensions and fresh policy risks,' said Rahul Kalantri, Vice President, Commodities at Mehta Equities.
Trump unveiled a steep 35% tariff on Canadian imports effective August 1, and signaled new blanket tariffs of 15–20% on most other trading partners. 'Trump's push for a massive 300 basis-point Fed rate cut fueled speculation of a dovish central bank shift, raising concerns about future inflation,' Kalantri said.
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On Thursday, silver September futures on the MCX settled at Rs 1,09,123 per kilogram, up 1.73%. Gold August futures also gained 0.24%, closing at Rs 96,691 per 10 grams.
'Gold and silver gained amid the U.S. President's uncertain trade policies, which increased uncertainty in the global financial markets,' the research desk at Prithvifinmart Commodity Research said, adding that safe-haven flows had intensified. Trump's statements about imposing 50% tariffs on copper imports and Brazil, as well as an additional 10% levy on BRICS nations, have further dented sentiment.
Silver
also breached a key resistance level of $37 per troy ounce in the international markets. 'Silver has support at $36.85-36.60 while resistance is at $37.40-37.55,' Kalantri noted. In rupee terms, silver faces resistance at Rs 1,09,950–1,10,700, levels it decisively broke through on Friday.
'Trump's tariff uncertainty and weakness in the global equity markets could continue to push precious metals up,' said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain expects continued volatility in bullion due to fluctuations in the dollar index and trade policy risks. 'We expect gold and silver prices to remain volatile in today's session amid volatility in the dollar index and U.S. trade tariff uncertainty but gold prices could hold its support level of $3,280 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,' he said.
As global investors react to a rapidly shifting macro environment, silver's status as a hedge against both inflation and geopolitical risk appears firmly in play, propelling the metal to historic highs on Indian soil.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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