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Another surge of ₹2,000 in silver prices led to the silver metal hitting a fresh peak of ₹1,20,000 per kilogram in the national capital on Wednesday, as traders flocked to stock-up on safe-haven assets after the heightened US tariffs on Indian products came into effect.

According to the All India Sarafa Association, the white metal had rallied ₹3,000 to ₹1,18,000 per kg on Tuesday.

Meanwhile, gold prices also saw a jump in the national capital as gold of 99.9 per cent purity climbed by ₹500 to ₹1,01,270 per 10 grams (inclusive of all taxes) on Wednesday. The precious metal had settled at ₹1,00,770 per 10 grams in the previous market close.

Additionally, the yellow metal of 99.5 per cent purity appreciated by ₹400 to ₹1,00,800 per 10 grams (inclusive of all taxes) on Wednesday. It had finished at ₹1,00,400 per 10 grams on Tuesday.

 

Also Read: Safe-haven demand makes gold pricier by ₹600

"Gold and silver are continuing their upward trajectory amid increased political unpredictability following President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook," said Renisha Chainani, Head - Research at Augmont, adding that the action has increased doubts about the Fed's independence and capacity to set monetary policy without interference from politics.

According to the commodities market experts, the yellow metal had rallied on Monday after Trump's announcement that Fed Governor Lisa Cook be removed from her post immediately over allegations of mortgage fraud.

The dollar tumbled after Trump's move, also benefiting bullion prices in the overseas markets. Later, the greenback recouped its losses and weighed on the precious metal as Cook argued that Trump had no authority for the firing, they added.

Earlier this year, President Trump had also threatened to fire Fed Chair Jerome Powell, whom he has repeatedly criticised for not cutting interest rates.

Globally, spot gold is trading 0.55 per cent lower at USD 3,375.08 per ounce in New York, and spot silver also slipped 1 per cent to trade at USD 38.23 per ounce.