New Delhi: Silver prices continued their upward rally on Wednesday, touching fresh all-time high on the Multi Commodity Exchange (MCX), supported by strong industrial demand and favourable market trends.
Silver futures for July expiry hit a new all-time high of Rs 1,09,748 per kilogram on MCX, breaking Tuesday’s record.
The September futures jumped even higher, touching Rs 1,11,000 per kilogram. With these gains, silver is now trading nearly 25 per cent above its all-time low of Rs 88,050 per kg.
Analysts believe the metal will remain firm due to supportive fundamentals, especially with a revival in industrial demand.
They suggest that investors consider silver as a medium-term tactical investment.
Meanwhile, gold prices slipped for the second straight session. Gold futures for August delivery fell by 0.2 per cent to around Rs 99,329 per 10 grams.
This comes just days after gold crossed the Rs 1 lakh mark for the first time ever on the exchange.
As silver continues to rise and gold shows signs of weakness, the gold-silver ratio has dropped to around 91, after staying above 100 for much of April and May.
This ratio indicates how many ounces of silver are needed to buy one ounce of gold and is often used to gauge the relative value of the two metals.
According to analysts, the gold market is currently in a wait-and-watch mode ahead of the US Federal Reserve’s interest rate decision on Wednesday.
Other global triggers, including rising tensions between Iran and Israel and ongoing trade negotiations, are also being closely monitored by investors.
Tata Mutual Fund remains positive on gold in the long run, citing continued buying by central banks and the Fed’s monetary stance as key support factors.
“Gold prices traded in a narrow range as investors await the US Federal Reserve’s policy decision, scheduled for 11:30 PM IST. MCX Gold remained within the band of Rs 99,150 to Rs 99,750, while Comex gold hovered around $3,375,” Jateen Trivedi of LKP Securities said.
“The current trading range for gold is seen between Rs 98,500 to Rs 1,00,500 in the near term,” he added.
(IANS)
