Silver price soars to record high above $61/ounce; Gold futures fall ahead of Fed rate cut decision

In the international market, Comex silver (for January delivery) climbed to an all-time high of $61.53 an ounce. The contract was trading 1.09% higher at $61.020 per troy ounce at the time of writing.

Similarly, white metal futures for the May expiry advanced ₹2,953 or 1.55% to a record high of ₹1,93,299 per kilogram.

The rally in silver prices is being driven by persistent tight supplies and shrinking global inventories, especially in London and China. The latter’s inventories touched a decade’s low in late November. The metal prices are also being bolstered by their recent inclusion on the US critical mineral list and expectations of Federal Reserve rate cuts.

According to analysts quoted by leading news websites, investors expect strong industrial demand for silver in the years ahead, which has driven prices higher. They note that buying momentum remains strong.

Furthermore, sectors such as solar energy, electric vehicles, and related infrastructure, as well as data centres and artificial intelligence, are set to push industrial demand upward through 2030, as per a research report by the Silver Institute.

However, gold futures for February delivery declined by ₹131 or 0.10% to ₹1,29,976 per 10 grams on the MCX. Yellow metal contracts for the April expiry stood at ₹1,32,240 per 10 grams, down by ₹141 or 0.11%, at around 10:55 am.

Globally, Comex gold (February) declined 0.09% to $4,232.20 per ounce.

Gold prices declined as investors turned cautious ahead of the US Federal Reserve's final policy meeting of the year.

According to the CME Group’s FedWatch, investors are betting on an 87.6% probability that the Federal Reserve will opt for a quarter-point rate cut during its final meeting of 2025. The Fed is set to announce the outcome later in the day.