New Delhi– Silver prices continued their bullish streak on Wednesday, hitting yet another record high on the Multi Commodity Exchange (MCX) amid strong industrial demand and favorable market sentiment.
Silver futures for July delivery surged to ₹1,09,748 per kilogram, surpassing Tuesday’s record. September contracts climbed even higher, touching ₹1,11,000 per kilogram. The metal is now trading nearly 25% above its all-time low of ₹88,050 per kg.
Market analysts attribute the rally to solid industrial demand and strong fundamentals, suggesting silver may remain firm in the near-to-medium term. Many are advising investors to consider silver as a tactical investment option, particularly given its current momentum.
In contrast, gold prices dipped for the second consecutive session. Gold futures for August delivery fell 0.2% to around ₹99,329 per 10 grams on Wednesday, after briefly crossing the ₹1 lakh mark earlier this week.
The contrasting movements in gold and silver have brought the gold-silver ratio down to around 91, after remaining above 100 for much of April and May. This ratio, which indicates how many ounces of silver are needed to purchase one ounce of gold, is closely watched as a measure of relative value between the two metals.
Investors are also taking a cautious approach ahead of the U.S. Federal Reserve’s policy decision, expected late Wednesday night. Global tensions, particularly the Iran-Israel conflict and ongoing trade negotiations, are also influencing market dynamics.
Despite the recent pullback in prices, Tata Mutual Fund remains optimistic about gold’s long-term prospects, citing continued central bank buying and the Fed’s monetary stance as key support factors.
“Gold prices traded in a narrow range as investors await the U.S. Federal Reserve’s policy decision, scheduled for 11:30 PM IST. On MCX, gold fluctuated between ₹99,150 and ₹99,750, while Comex gold hovered around $3,375,” said Jateen Trivedi, analyst at LKP Securities.
He added that the near-term trading range for gold is likely between ₹98,500 and ₹1,00,500. (Source: IANS)
