Silver prices hit all-time high today: Here we decode why
What's the story
Silver prices in India have hit an all-time high of ₹1,06,400 per kg today.
The surge mirrors a global rally in the metal and is supported by very strong international cues and robust industrial demand.
Over the past week, silver has gained nearly 9%, outperforming gold's movement.
The metal has broken out of its earlier range and now trades above $36.5 per ounce globally—a level last seen over a decade ago.
Market dynamics
Silver's safe-haven demand gets a boost
The current rally in silver prices is driven by a mix of global and domestic factors.
These include safe-haven demand due to a dovish outlook from the US Federal Reserve and weak economic data, making precious metals more attractive to investors.
A weaker US dollar has also made commodities like silver more appealing for buyers holding other currencies.
Trade impact
US-China trade tensions keep silver attractive
Renewed US-China trade tensions have kept silver attractive as a hedge and an industrial input.
The metal's industrial use is on the rise, especially as an important component in solar panels, electric vehicles (EVs), and electronics.
Despite eased geopolitical tensions denting silver's safe-haven appeal last week, its industrial value has continued to support the rally.
Future forecast
Silver may test ₹1.11L/kg levels
Analysts at online marketplace Augmont expect silver to test $38 per ounce levels (around ₹1.11 lakh/kg) if the current momentum is continued.
However, the upcoming US inflation data and the Federal Reserve's June 17-18 meeting might influence market direction.
A hotter-than-expected Consumer Price Index (CPI) reading might delay interest rate cuts, strengthen the Dollar, and cap gains in precious metals like silver.