Silver scaled unprecedented highs on Friday after its prices surged ₹1,668 to hit a fresh peak of ₹1,30,000 per kilogram in the domestic futures market for the first time, as hopes for US Federal Reserve rate cut get stronger.
On the Multi Commodity Exchange (MCX), silver futures for March next year delivery soared ₹1,668 or 1.3 per cent to hit a lifetime high of ₹1,30,000 per kg.
The most traded December delivery also rallied 1,674 or 1.32 per cent to hit an all-time high of ₹1,28,612 per kg on the MCX.
Globally, silver futures for December delivery rose 1.52 per cent to USD 42.79 per ounce, scaling a fresh 14-year high.
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Traders say the new 14-year-high was backed on firm expectations of a Federal Reserve rate cut next week, which supported buying of the white metal by investors.
"Silver climbed 1 per cent on Friday, marking a new 14-year high as firm expectations of a Federal Reserve rate cut next week supported buying," said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi added that strong industrial demand from solar, electric vehicles and electronics has also kept the physical silver market tight against a backdrop of persistent supply constraints.
"Markets are now pricing in about a 93 per cent chance of a 25 basis-point interest cut at the US Federal Reserve’s September 17 policy meeting, with odds of a larger half-point move edging higher. Safe-haven demand further underpinned white metal amid ongoing geopolitical tensions," he said.
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