Mumbai, Jan 23: Precious metal prices soared to all-time highs on Friday, fueled by expectations of a US Federal Reserve rate cut and a softening dollar. On the Multi Commodity Exchange (MCX), silver futures for March delivery experienced a massive surge, gaining nearly 4% to reach Rs 3,39,927 per kilogram. Gold also maintained its bullish streak, with February futures rising to Rs 1,59,226 per 10 grams.
The record-breaking movement reflects a broader global shift as investors react to tariff-related statements from the US and leadership transitions within the Federal Reserve. International spot prices saw silver briefly touch $99.34 per ounce, while gold hovered just below the $5,000 milestone at $4,970.
“Volatility isn’t weakness; it’s opportunity if you understand what you’re holding,” an investment expert noted during a market review.
The surge is also attributed to structural changes in the global supply chain. Recent restrictions on silver exports from China have contributed to a sudden spike in prices. Market observers mentioned that these strict licensing requirements, combined with high industrial demand for green technology, have created a significant supply-demand gap.
In the national context, the rally has been amplified by a weakening rupee, which provides an additional cushion for domestic prices. Analysts noted that the current environment favors real assets as a hedge against currency dilution and debt. Despite the sharp upward move, some traders remained cautious, mentioning that the markets might see abrupt intraday pullbacks as they approach these historic psychological targets.
