Representative image of silver and gold.
Credit: iStock Photo
New Delhi: Silver futures soared to yet another record of Rs 2,72,202 per kg on Tuesday, tracking firm global trends, as uncertainties surrounding the US Federal Reserve's policy stance and escalating tensions in Iran spurred safe-haven demand.
On the Multi Commodity Exchange (MCX), silver futures for March delivery jumped by Rs 3,232, or 1.2 per cent, to hit a new record of Rs 2,72,202 per kilogram.
In the last two trading sessions, the white metal prices have skyrocketed by Rs 19,477, or 7.7 per cent, from Rs 2,52,725 per kg on Friday.
Silver prices surged sharply on Tuesday as geopolitical tensions in Iran deepened and traders grew wary over the Federal Reserve's policy uncertainty outlook, Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said.
Meanwhile, gold futures saw mild profit-booking after their record highs.
On the MCX, the yellow precious metal for the February contract slipped by Rs 196, or 0.14 per cent, to Rs 1,41,836 per 10 grams after touching a record of Rs 1,42,500 per 10 grams in the previous session.
In the international market, gold futures on the Comex also eased, declining by USD 15.26, or 0.33 per cent, to USD 4,599.44, after scaling a new peak of USD 4,640.26 per ounce on Monday.
On the Comex, silver futures for the March contract were trading marginally higher at USD 85.20 per ounce, after crossing the USD 86-per-ounce mark for the first time in the previous session.
According to Kalantri, market participants remained focused on the criminal probe into the Federal Reserve and its Chair Jerome Powell over a building renovation project, which has extended pressure on the central bank to lower interest rates.
Adding to market jitters, President Donald Trump announced a 25 per cent tariff on countries trading with Iran and warned of possible military intervention as protests intensified.
Kalantri added that investors are now awaiting the upcoming US inflation data for cues on the Fed's future course of policy direction. While interest rates are expected to remain unchanged this month, markets continue to price in two cuts later this year.
"Strong inflows into exchange-traded products and a rush for portfolio diversification have lifted both metals to fresh record highs," he said.