Silver reaches new all-time high of Rs 1,90,374/kg; will gold follow suit?

Bullion kicked off Wednesday’s trade on a strong note, with silver futures soaring past Rs 1.90 lakh per kg and hitting a new all-time high of Rs 1,90,374/kg, while gold also remained firm above Rs 1.30 lakh, trading at Rs 1,30,369 per 10 grams.

Internationally, Silver extended gains after breaking above $60 an ounce for the first time on Tuesday. Silver climbed as much as 1.3% to a fresh record of $61.4797 an ounce on Wednesday, fuelled by speculative bets that the US Federal Reserve will announce a quarter-point rate cut at the conclusion of its Dec. 9–10 meeting.

Precious metals ended Tuesday’s session on a positive note, with both gold and silver closing higher across domestic and global markets. On the Multi Commodity Exchange (MCX), the February gold futures contract settled at Rs 1,30,107 per 10 grams, up 0.11%. Silver outperformed, with the March futures closing at Rs 1,88,064 per kg, gaining 3.48%.

Ahead of the U.S. Federal Reserve’s policy outcome, both metals remained well-bid, with silver making global headlines by breaching the $60 per troy ounce level for the first time. The milestone came just 12 trading sessions after it crossed the $50 mark — a rapid rally powered by strong fundamentals.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, tight physical supply and bullish sentiment in industrial metals have played a major role in silver’s surge. Gold, meanwhile, continues to find support above the $4,200-per-ounce level internationally.

Market participants are now closely watching commentary from Fed Chair Jerome Powell. While a 25-bps rate cut is widely expected, the tone of his remarks could further influence bullion prices.
The U.S. Dollar Index (DXY) hovered near 99.23, inching up 0.01 points or 0.01%, keeping traders cautious.Jain noted that gold and silver are currently holding firm above their respective key support levels — $3,960 for gold and $54.40 for silver. “We anticipate choppy trade ahead, driven by volatility in the dollar index, global financial markets, and the looming Fed decision,” he said.

For traders navigating the current setup, Jain has outlined key technical zones:

– Gold: Support lies at Rs 1,29,500-1,28,800, while resistance is pegged at Rs 1,30,660–1,31,200.

– Silver: Support is seen around Rs 1,86,600-1,85,000, with resistance at Rs 1,90,000-1,92,400.

Jain recommends entering long positions in gold near the Rs 1,29,600–1,29,200 range, setting a stop loss at Rs 1,28,800 and targeting Rs 1,30,600–1,31,200. For silver, buying around Rs 1,85,500 is advised, with a stop loss below Rs 1,81,000 and a target range of Rs 1,90,000–1,94,000.

Standard gold (22 carat) prices in Delhi stand at Rs 97,608/8 grams, while pure gold (24 carat) prices stand at Rs 1,05,016/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 97,560/8 grams, while pure gold (24 carat) prices stand at Rs 1,04,992/8 grams.

Standard gold (22 carat) prices in Chennai stand at Rs 97,368/8 grams, while pure gold (24 carat) prices stand at Rs 1,04,760/8 grams.

Standard gold (22 carat) prices in Hyderabad stand at Rs 97,088/8 grams, while pure gold (24 carat) prices stand at Rs 1,04,480/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)