File photo for representational purpose.
Credit: Reuters photo
New Delhi: Silver prices strengthened for the third straight day and jumped Rs 5,100 to hit a new peak of Rs 1,99,500 per kilogram in the national capital on Friday, amid sustained global demand for the safe-haven asset, according to the All India Sarafa Association.
The white metal closed Rs 2,400 up at Rs 1,94,400 per kilogram on Thursday, a day after surging Rs 11,500 on Wednesday.
"In the domestic market, spot silver prices once again recorded a new high, while gold prices also appreciated significantly, trading near the record level," Dilip Parmar, Research Analyst, HDFC Securities, said.
In the local bullion market, gold of 99.9 per cent purity increased by Rs 1,110 to Rs 1,33,600 per 10 grams (inclusive of all taxes) compared to the previous close of Rs 1,32,490 per 10 grams, as per the association.
"Gold prices commenced an upward trajectory following a period of consolidation over the past few days. This surge in the precious metal was primarily supported by a weakening rupee and sustained investment demand," he added.
In the international markets, spot gold appreciated by USD 58.61, or 1.37 per cent, to USD 4,338.40 per ounce.
"Gold and silver have responded with strong gains after a 25 basis points rate cut by the US Federal Reserve at a time when inflation risks are tilting higher. This has amplified concerns about faster dollar debasement," Anindya Banerjee, Head Currency and Commodity, Kotak Securities, said.
Rising for the fourth consecutive day, spot silver rose more than 1 per cent to scale a fresh peak of USD 64.57 per ounce in the overseas trade.
"Silver is also benefiting from a notable physical squeeze. Asian buyers are aggressively demanding physical delivery, while Western sellers are finding it increasingly difficult to meet their derivative-linked obligations," Banerjee added.