Silver prices soar to new high of ₹1.89 lakh/kg
What's the story
Silver prices in India soared to a new high on Tuesday, October 14. The precious metal was priced at ₹189 per gram or ₹1.89 lakh per kilogram in Delhi, according to data from GoodReturns. The surge comes amid a global supply crunch and geopolitical tensions that have driven silver prices up on international markets too.
International surge
Silver hits record highs on international markets
On international markets, silver has also hit record highs, trading at $53.45 per ounce on COMEX. The rise is attributed to tightening supply, geopolitical tensions, and expectations of US Federal Reserve rate cuts. Year-to-date, silver has seen significant gains due to its safe-haven appeal and industrial demand. Unlike gold, silver is more cyclical and responds sharply to global economic trends which can create higher potential returns but also greater volatility.
Investor caution
Geopolitical tensions, trade issues fuel silver's rally
Manav Modi, Analyst at Motilal Oswal Financial Services, said the recent halt of inflows into silver ETFs indicates supply pressures in the market. He warned that while prices may continue to outperform in the near term, investors should be prepared for fluctuations. Geopolitical developments such as renewed US-China trade tensions and an ongoing US government shutdown have further fueled silver's rally amid global market uncertainty.
Policy impact
Fed policy expectations impact silver prices
Monetary policy expectations also play a key role in silver's price movement. Traders are now looking forward to Fed Chair Jerome Powell's address at the NABE annual meeting for fresh guidance. Lower interest rates usually support non-yielding assets like silver and gold, adding to their appeal amid economic uncertainty.