Silver Futures Reach New Heights as Prices Surpass Rs 1.85 Lakh per Kg Amidst Rupee Decline Against Dollar
Silver prices surged to a record high on Wednesday, reaching Rs 1,84,727 per kilogram, marking an increase of Rs 3,126. Gold futures also saw a rise, climbing to Rs 1,30,766 per 10 grams. This upward trend in precious metal prices is largely attributed to the significant decline of the Indian rupee against the US dollar, as noted by market analysts. The international market’s strong performance further fueled the increase in these commodities.
Market Trends and Price Movements
On the Multi Commodity Exchange (MCX), silver futures for March 2026 experienced a notable rise of 1.72 percent, reflecting a gain of Rs 3,126. This brought the price to Rs 1,84,727 per kilogram. Meanwhile, gold futures for February 2026 delivery rose by Rs 1,007, or 0.78 percent, reaching Rs 1,30,766 per 10 grams. The rupee’s depreciation, which crossed the 90-mark and fell to 90.02 during morning trading, has been a significant factor in the rising costs of precious metals. Analysts attribute this decline to ongoing demand for dollars from banks and the withdrawal of overseas funds.
International Influences on Precious Metals
The international market has also played a crucial role in the recent surge of gold and silver prices. Anticipation of a potential interest rate cut by the US Federal Reserve next week has driven prices upward. In December, gold futures on the Comex rose by USD 29.3, or 0.7 percent, to USD 4,215.9 per ounce. Similarly, February 2026 futures increased by USD 39.3, or 0.93 percent, to USD 4,260.1 per ounce. Jigar Trivedi, a Senior Research Analyst at Reliance Securities, noted that gold is approaching a six-week high, supported by expectations of further monetary easing from the Federal Reserve.
Investor Sentiment and Economic Indicators
Investor sentiment has been bolstered by recent US economic data indicating mild weakness, which has increased the likelihood of a rate cut to nearly 90 percent. Rahul Kalantri, Vice-President of Commodities at Mehta Equities, highlighted that this sentiment is driving interest in precious metals. Speculation regarding a potential change in leadership at the Federal Reserve, with Kevin Hassett possibly replacing Jerome Powell, has also contributed to a more dovish market outlook.
Future Outlook for Precious Metals
Looking ahead, silver futures for December delivery on Comex rose by 1.6 percent to USD 58.90 per ounce, while the March contract increased by 1.62 percent to USD 59.65 per ounce, both reaching record levels. Investors are now closely monitoring upcoming economic reports, including the ADP employment report and delayed September Personal Consumption Expenditures (PCE) inflation data, for further insights into policy direction. Additionally, US Treasury yields have seen a decline following an initial rise driven by widespread bond selling, further influencing market dynamics.
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