New Delhi: Silver scaled uncharted territory on Friday and surged Rs 1,668 to hit a fresh peak of Rs 1,30,000 per kilogram in the domestic futures market for the first time, as investors rushed to the white metal on strong bets of a US Federal Reserve rate cut next week.
On the Multi Commodity Exchange (MCX), silver futures for March next year delivery soared Rs 1,668 or 1.3 per cent to hit a lifetime high of Rs 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 Rs 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."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 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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