Silver prices hit lifetime high of ₹1.63 lakh/kg; surpass $50/ounce in global markets; gold unchanged

Silver prices on Thursday, October 9, soared ₹6,000 to hit a lifetime high of ₹1,63,000 per kg in Delhi, and the white metal touched the $50 per ounce level for the first time in the international markets. 

Strong industrial demand for silver, a global supply deficit, geopolitical tensions, economic certainties and market fluctuations, along with growing expectations of interest rate cuts by the US Federal Reserve, have been driving the demand for the white metal in both domestic and overseas markets. 

After climbing as much as ₹7,400 in a single session on October 6, silver witnessed a remarkable single-day rally for the second time this week. Silver had closed at ₹1,57,000 per kg on Wednesday, according to the All India Sarafa Association. 

Gold (24K, 99.9% purity) remained unchanged at its record high of ₹1,26,600 per 10 gram on Thursday, while the yellow metal of 99.5% purity was also steady at ₹1,26,000 per 10 gram. 

Globally, spot gold was trading marginally lower at $4,039.26 per ounce. Silver, on the other hand, jumped over 2% to breach the crucial $50 per ounce mark in the spot markets for the very first time. 

Gold and silver futures

Silver futures for the December expiry soared to a fresh peak of ₹1,53,388 per kg on the Multi Commodity Exchange of India (MCX), rising over 2.3% from the previous close of ₹1,49,855 per kg. 

Gold futures for the December delivery also touched an all-time high of ₹1,23,677 per 10 gram on the MCX, up 0.3% from the previous closing price of ₹1,23,209 per 10 gram. 

What is driving gold and silver?

The ongoing US government shutdown, clouding the economic outlook by delaying data releases crucial for Fed policy decisions, is supporting gold and silver amid an uncertain environment. 

"Silver's surge past toward the psychologically critical $50 per ounce threshold marks a defining moment for precious metals markets. With the white metal delivering 72% returns year-to-date compared to gold's 54%, we're witnessing silver's unique dual identity as both monetary hedge and industrial necessity driving prices toward levels not sustained since 1980,” a PTI report quoted Rajkumar Subramanian, Head - Product & Family Office, PL Wealth, as saying. 

While the peak seen in 2011 was also driven by speculative excesses, silver’s rally seen today is characterised by structural imbalances with persistent supply deficits and accelerating industrial demand from solar, EV and 5G sectors. 

"The convergence of geopolitical uncertainty, monetary accommodation, and supply constraints creates a compelling case for sustained strength beyond the $50 milestone," Subramanian added.

The latest Federal Open Market Committee Meeting (FOMC) minutes showed officials acknowledging rising risks to the labour market that could justify a rate cut, though concerns over inflation persisted, the PTI report quoted Jigar Trivedi, Senior Research Analyst at Reliance Securities, as saying. 

Meanwhile, markets faced renewed political turbulence in France and leadership changes in Japan. Additionally, a tight physical market also underpinned silver prices, supported by strong industrial demand from the solar and electronics sectors, with the Silver Institute projecting a global supply deficit for the fifth consecutive year in 2025, Trivedi added.