Gold Price Today: Silver Crosses ₹2 Lakh Mark, Gold Hits New Record in Futures Market

The Indian futures market has witnessed an unprecedented surge in the prices of precious metals, with silver breaching the ₹2 lakh per kilogram mark for the first time in history, and gold also establishing a new record high. This remarkable rally has captivated market participants and analysts alike, prompting questions about the sustainability and future trajectory of these escalating prices.

Silver's Historic Ascent Past ₹2 Lakh

On the Multi Commodity Exchange (MCX), silver prices achieved a significant milestone, crossing the ₹2 lakh per kilogram threshold. During the trading session, silver surged by ₹1,420 to reach an all-time high of ₹2,00,362, while however, some profit-booking was observed later in the day, with prices trading at ₹1,98,896, down by a marginal ₹46. Earlier in the day, silver had opened with a decline of ₹1,984 at ₹1,96,958 and touched a day's low of ₹1,96,957, indicating a strong recovery of ₹3,405 from its lowest point.

Weekly and Monthly Gains for Silver

Silver has demonstrated substantial gains not only in the current trading week but also throughout the month of December. In the last trading session of the previous week, silver prices stood at ₹1,83,408 per kilogram, marking an increase of ₹16,954 to date. Looking at the broader December period, silver has seen an even more significant jump. At the close of November's last trading day, silver was priced at ₹1,74,981, which means it has surged by ₹25,381 so far this month. This performance highlights an unexpectedly strong return for silver investors in December.

Gold Also Sets a New Benchmark

Mirroring silver's upward trajectory, gold prices have also set a new record in the futures market. According to MCX data, gold prices climbed by ₹1,642 to reach an unprecedented ₹1,34,111. This marks the first time gold has hit such a record in approximately two months, specifically since October 17. In the morning session, gold opened with a slight dip at ₹1,32,442, compared to its previous day's closing price of ₹1,32,469. Overall, gold prices have seen an increase of ₹3,649 in. The month of December, underscoring solid demand for the yellow metal.

Key Factors Driving the Price Surge

Market experts attribute this dramatic rise in precious metal prices to a confluence of several significant factors. A primary driver is the 50% tariff imposed by the United States on Mexico, which has disrupted global trade and supply chains, impacting the availability and cost of various commodities, including precious metals. Also, recent interest rate cuts by the Federal Reserve have made gold and silver more attractive as investment alternatives. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold and silver, thereby boosting their demand.

Supply shortages in the precious metals market are another critical factor contributing to the price escalation, while challenges in mining and production have affected the availability of these metals, creating an imbalance between supply and demand. Amid global economic uncertainties and geopolitical tensions, investors are increasingly seeking safe-haven assets, leading to a sustained increase in demand for both gold and silver. This heightened demand plays a crucial role in pushing prices higher.

Future Outlook and Projections

Market analysts suggest that the upward momentum in precious metal prices may continue. Some experts predict that silver prices could potentially reach ₹2. 50 lakh per kilogram by the first half of 2026. This forecast is based on current market dynamics and the prevailing global economic outlook. Investors are advised to closely monitor market developments and make informed investment decisions, as the volatility in precious metals markets can present both opportunities and risks.