Silver surges ₹4,000 to hit record high of ₹1.18 lakh/kg; gold jumps ₹1,000

Silver prices surged by ₹4,000 to hit a record high of ₹1,18,000 per kilogram while gold advanced ₹1,000 in the national capital on Wednesday due to heavy buying by stockists.

According to the All India Sarafa Association, gold of 99.9% purity climbed ₹1,000 to ₹1,01,020 per 10 grams (inclusive of all taxes). It had closed at ₹1,00,020 per 10 grams in the previous market close.

Gold of 99.5% purity appreciated ₹900 to ₹1,00,450 per 10 grams (inclusive of all taxes) on Wednesday. In the previous trade, the yellow metal finished at ₹99,550 per 10 grams.

"Gold continues to be in demand as global uncertainty rises, largely due to diminishing expectations for a US-EU trade deal ahead of the August 1 deadline.

"This uncertainty has intensified market anxiety, which drives flow towards the safe-haven," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

The precious metal is also supported by overall weakness in the US Dollar, Gandhi said.

In the national capital, Silver had soared ₹3,000 to close at ₹1,14,000 per kg on Tuesday. It had risen by ₹7,500 per kg in the last three sessions.

Bullion traders said the ongoing bullish sentiment in the silver market is primarily driven by industrial demand.

Meanwhile, silver futures for September delivery climbed ₹896 or 0.77% to hit a fresh record high of ₹1,16,551 per kg on the Multi Commodity Exchange (MCX).

Additionally, gold futures for August delivery slipped ₹24 to ₹1,00,305 per 10 grams on the commodities bourse.

On the global front, spot gold fell 0.26% to $3,422.87 per ounce.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, investors will await manufacturing and services PMI data from major economies, including the US, the UK and the Eurozone, which will provide more cues for the trajectory of bullion prices in the near term.

Spot silver climbed 0.26% to $39.39 per ounce in the overseas markets.