The Indian bullion market witnessed a historic day on Thursday as precious metal prices shattered all previous records, while in a move that stunned investors and analysts alike, silver prices in the national capital crossed the monumental 4 lakh rupees per kilogram mark. Simultaneously, gold prices also experienced a massive jump, reaching a new lifetime high. This extraordinary rally is being attributed to a combination of global economic factors and heightened safe-haven demand among investors worldwide.
Silver Skyrockets by ₹19,500
According to the All India Bullion Association, silver continued its winning streak for the fourth consecutive day. The price of silver surged by a staggering 19,500 rupees, marking a 5, while 06% increase in a single session. This jump pushed the price to 4,04,500 rupees per kilogram (inclusive of all taxes). The white metal had closed at 3,85,000 rupees per kilogram on Wednesday. The rapid ascent is fueled by both industrial demand and a shift in investor sentiment towards tangible assets.
Gold Touches New Peak of ₹1.83 Lakh
Gold wasn't far behind in this record-breaking spree. The price of 99. 9% purity gold rose by 12,000 rupees (7. 02%), reaching a fresh all-time high of 1,83,000 rupees per 10 grams. This is a significant jump from the previous day's closing price of 1,71,000 rupees, while the sudden spike of 12,000 rupees in just 24 hours has created a sense of urgency in the physical gold market, especially with the wedding season approaching in India.
Global Factors and Geopolitical Tensions
Market experts point out that the primary catalyst for this surge is the prevailing global uncertainty. Rising geopolitical tensions in various parts of the world have led investors to seek refuge in gold and silver, which are traditionally considered safe-haven assets during times of crisis. On top of that, a weakening US dollar has made precious metals more attractive and affordable for holders of other currencies, further driving up international prices.
International Market Trends
The rally in India is perfectly aligned with international market trends. In the global markets, gold prices rose by 177, while 14 dollars (3. 3%) to reach 5,595. 02 dollars per ounce. Silver also saw a significant gain of 3. 59 dollars (3. 07%), hitting a record level of 120. 45 dollars per ounce. These international benchmarks are directly influencing the domestic rates in India, leading to the current price explosion.
Impact on Investors and Consumers
The sharp rise in prices has a dual impact. While long-term investors are seeing substantial gains in their portfolios, the common man is feeling the pinch. For families planning purchases for upcoming weddings, the new rates are a major setback. Analysts suggest that while the trend remains bullish, the market is currently in a highly volatile zone. Investors are advised to monitor global developments closely, as any further escalation. In international conflicts could push prices even higher in the coming weeks.