Silver prices soar to all-time high: Here we decode why
What's the story
Silver prices have hit a new high of ₹1.2 lakh per kilogram in Delhi today. The spike comes as traders rush to safe-haven assets after steep US tariffs on Indian products took effect. The All India Sarafa Association reported that the white metal had surged by ₹3,000 to ₹1.18 lakh per kg on Tuesday.
Precious metal
Gold prices also rise
Along with silver, gold prices have also witnessed a rise. In Delhi, the price of 99.9% pure gold rose by ₹500 to ₹1,01,270 per 10g (all taxes included) today. The yellow metal was priced at ₹1,00,770 per 10g on Tuesday's market close. For 99.5% pure gold, the price went up by ₹400 to ₹1,00,800 per 10g (all taxes included) today from yesterday's closing price of ₹1,00,400 per 10g.
Market analysis
Political uncertainty leads to price surge
Renisha Chainani, Head of Research at Augmont, said the rise in gold and silver prices is due to increased political uncertainty after US President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook. This has raised doubts over the Fed's independence and its ability to conduct monetary policy free from political interference.
Market reaction
Trump's Fed dismissal affects market
Trump's decision to remove Cook over allegations of mortgage fraud has further impacted the market. The dollar fell after Trump's move, which also helped boost bullion prices in overseas markets. However, the greenback later recovered its losses and weighed on precious metals as Cook contended that Trump had no authority for her firing.