Silver prices rise 4% during the week, gold ETF inflows hit lifetime high: Check precious metal updates

Silver prices rebounded on Friday, January 9, rising by ₹6,500 to ₹2,50,000 per kg in Delhi, while gold jumped ₹1,200 to ₹1,41,700 per 10 gram on renewed safe-haven demand for the precious metals amid global uncertainty, according to the All India Sarafa Association.

Over the week, silver prices soared 3.56% from ₹2,41,400 per kg on January 2 to ₹2,50,000 per kg today. Gold prices grew by 1.6% during the week, rising from ₹1,39,440 per 10 gram last week to ₹1,41,700 per 10 gram in today’s session. 

On Thursday, gold and silver prices fell due to a stronger dollar and easing safe-haven demand. The yellow metal fell by ₹900 to ₹1,40,500 per 10 gram yesterday, while silver prices crashed by as much as ₹12,000 to ₹2,43,500 per kg. 

The precious metals rebounded on Friday because of renewed safe-haven demand due to global uncertainty. Gold and silver are safe-haven metals, which means they rise during uncertain times like rising geopolitical tensions, market volatility and weak currencies. 

Threats from US President Donald Trump against Iran boosted the precious metals on Friday. Further, traders remain cautious ahead of US Supreme Court rulings on tariff decisions. 

"If the court rules against the tariffs, concerns over an intensifying global trade war could ease, potentially limiting further upside in gold and silver prices in the near term,” a PTI report quoted an expert as saying. 

In the international markets, spot gold was trading flat at $4,479.38 per ounce, while silver was trading 1.79% ($1.37) higher at $78.38 per ounce.

The white metal hit an intraday low of $73.83 per ounce during the session, falling by as much as 5.53% ($4.32). 

The safe-haven demand for gold and silver was supported by reports that US President Trump is considering imposing steep tariffs, potentially as high as 500%, on countries that continue to buy Russian oil, the PTI report quoted Kaynat Chainwala, AVP Commodity Research, Kotak Securities, as saying. 

Gold and silver futures

Gold futures for February delivery hit an intraday high of ₹1,38,902 per 10 gram on January 9, rising by 2.3% from last Friday’s closing price of ₹1,35,761 per 10 gram on the Multi Commodity Exchange (MCX). The contracts are trading down from the lifetime high of ₹1,40,465 per 10 gram hit on December 26. 

Meanwhile, silver futures for March delivery touched an intraday high of ₹2,50,800 per kg on Friday, up 6.1% from last week’s closing price of ₹2,36,316 per kg on the MCX. The futures contracts hit their lifetime high of ₹2,59,692 per kg on Wednesday, January 7. 

Gold ETFs

Inflows into gold exchange-traded funds (ETFs) in December hit a lifetime high on Friday, AMFI data showed, rising by 211.2% to ₹11,646.74 crore from ₹3,741.79 crore in November. In November, gold ETF inflows fell by 51.6% from ₹7,743.19 crore in October.  

However, the mutual fund industry witnessed net outflows of ₹66,590.70 crore in December, and the total assets under management (AUM) of the industry slipped to ₹80,23,378.99 crore.