Silver prices have stunned investors with a sharp rally, while gold has shown signs of weakening. In the national capital’s bullion market, silver hit a fresh all-time high on Friday, January 16, driven by strong buying interest, even as gold prices declined amid easing global tensions and a stronger US dollar.
Silver continued its strong upward momentum and created history in the bullion market. According to the All India Sarafa Association, silver surged by ₹3,600 to reach a new all-time high of ₹2,92,600 per kilogram in the national capital on Friday, January 16.
This marked the sixth consecutive trading session of record gains for silver. On Thursday, silver had closed at ₹2,89,000 per kilogram.
Market participants said that heavy buying by stockists and investors provided strong support to silver prices. Traders noted that despite weak global cues, rising industrial demand has continued to strengthen silver prices.
A look at recent data shows that silver has witnessed a massive rally in a short span.
Silver jumped 20.16 percent, or ₹49,100, in just six trading sessions
On January 8, silver was priced at ₹2,43,500 per kilogram
Silver has also outperformed gold for the second consecutive year, delivering a return of nearly 22.4 percent so far.
In contrast, gold prices recorded a notable fall.
99.9 percent purity gold declined by ₹1,100
Gold settled at ₹1,46,200 per 10 grams (inclusive of all taxes)
In the previous session, gold had touched its all-time high of ₹1,47,300 per 10 grams.
Precious metals also remained under pressure in the international market for the second consecutive day.
The decline was attributed to:
A stronger US dollar
Reduced geopolitical risk due to easing tensions in West Asia
In the international spot market:
Gold fell by $12.46, or 0.27 percent, to $4,603.51 per ounce
Commenting on the market movement, Praveen Singh, Commodity Head at Mirae Asset Sharekhan, said:
"Spot gold slipped around 0.25 percent to trade near $4,606 per ounce. Prices came under pressure as fears of a US attack on Iran eased."
On Friday, international spot silver also witnessed a steep decline.
Silver fell by 2.26 percent, or $2.08, to $90.33 per ounce
Earlier, silver had touched a record high of $93.57 per ounce
However, prices dropped sharply after indications from the US administration that it may not impose import duties on silver and other critical metals. Following this, silver prices fell nearly 8 percent during the day, sliding to as low as $86.30 per ounce.