Silver prices in India hit all-time high, surpass ₹1.1 lakh
What's the story
Silver prices in India have touched an all-time high, breaching the ₹1.1 lakh per kilogram mark on Friday. The spot price stood at ₹109.9 per gram or ₹1,09,900 per kilogram, according to Goodreturns data. The surge is primarily due to heightened demand and global economic uncertainties that have investors flocking toward safe-haven assets like silver and gold.
Market influence
Global economic concerns push silver prices higher
The spike in silver prices is mostly a result of global economic concerns. The international spot price for silver rose by 0.4% to $37.17 per ounce, Reuters reported. Rahul Kalantri, VP Commodities at Mehta Equities, said "Investors are seeking safety amid fresh tariff threats and policy risks," adding that these factors are fueling inflation fears.
Exchange impact
Factors influencing silver prices in India
Silver prices in India are closely tied to global rates and the rupee-dollar exchange rate. A weaker rupee against the dollar can make silver more expensive for Indian buyers, especially if global prices remain stable. Interest rates and inflation trends also play a major role in influencing silver prices. Typically, higher inflation and lower interest rates tend to support precious metal prices like gold and silver.