Silver rates surge to near ₹2 lakh per kg in India, hits new life-time high

Silver prices in India surged to an all-time high on Wednesday, driven by strong investor demand and rising global expectations of an interest rate cut by the US Federal Reserve. Silver futures for March delivery on the Multi Commodity Exchange (MCX) jumped by ₹3,736 per kg, or 1.98%, to trade at ₹1,91,800 per kg.

This record-breaking momentum follows an equally sharp rally in the previous session, where the white metal had already soared by ₹6,923 per kg (3.80%) on concerns over supply constraints in the global market. The bullish sentiment extended to gold, with February futures rising by ₹173 (0.13%) to hit ₹1,30,280 per 10 grams.

Gold prices remain strongly supported by consistent purchasing activity from global central banks, notably China, which has increased its gold reserves for the 13th consecutive month to approximately 74.12 million troy ounces. This sustained central bank buying acts as a fundamental floor for the entire precious metals complex. A significant factor contributing to silver’s exceptional rally is the massive influx of investment capital. Silver exchange-traded funds (ETFs) are witnessing record inflows, adding an impressive 324 tonnes of the white metal in the past week alone.

This aggressive investor positioning, combined with the anticipation of a U.S. Fed rate cut—which typically weakens the dollar and boosts non-yielding assets like metals—is fueling the market's trajectory, leading many analysts to believe the white metal has entered a new growth phase.