Representative image of silver.
Credit: iStock Photo
New Delhi: Silver prices hit a fresh record high of Rs 1,91,800 per kg in the futures trade on Wednesday on strong investor demand and expectations of an interest rate cut by the US Federal Reserve.
Rising for the second day, the most-traded March contract of the white metal jumped by Rs 3,736, or 1.98 per cent, to touch an all-time high of Rs 1,91,800 per kg on the Multi Commodity Exchange. The metal had soared by Rs 6,923, or 3.80 per cent, to hit a record of Rs 1,88,665 per kg in the previous session on supply constraints.
Meanwhile, gold futures for February delivery rose by Rs 173, or 0.13 per cent, to Rs 1,30,280 per 10 grams.
"Silver has reached a new high of Rs 1,91,000 per kilogram. Markets are anticipating a Federal Reserve interest rate cut later in the day, as well as firmer signals on policy direction through 2026," Renisha Chainani, Head - Research at Augmont, said.
She added that market participants are expecting a 25 basis point rate cut, but Federal Reserve Chair Jerome Powell may strike a cautious tone on future policy easing amid persistent inflation concerns.
In the international market, Comex gold futures for February delivery were trading marginally lower at $4,234.3 per ounce.
"Gold traded steady, hovering around $4,200 mark on Comex as market participants remain cautious ahead of the US Federal Reserve's interest rate decision, while silver rose to hit an unprecedented $60 milestone amid supply constraints and investor demand," Manav Modi, Commodities Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd, said.
Comex silver futures for March 2026 contract climbed by #1.3, or 2.14 per cent, to a lifetime high of #62.14 per ounce. The white metal has gained $3.73, or 6.4 per cent, over the last two sessions after closing at $58.40 per ounce on Monday.
Modi noted that after some minor pullbacks, silver bulls got in form once again, adding that prices have been supported by persistently low supplies and dwindling global inventories, expectations of the Fed easing interest rates, as well as its recent addition to the US critical minerals list.
Meanwhile, silver exchange traded fund (ETF) is also witnessing record inflows, iShares added 324 tonnes of silver in the past week, its largest weekly inflow since July.
Chainani also pointed out that global central banks continued to be net buyers of gold, with China increasing its reserves for the 13th consecutive month to about 74.12 million troy ounces.
"Comments from Governor Powell, economic forecasts and dot plot will trigger further direction in bullion," Modi added.