Precious metal markets delivered contrasting performances today, with silver scripting history by hitting a new all-time high, even as gold prices retreated slightly. This divergence highlights the unique dynamics at play in the commodities space.
Silver’s ascent was nothing short of spectacular. Driven by robust industrial demand and speculative fervor, prices jumped 2.3% to $35.25 per ounce globally. In India, the metal touched ₹92,700 per kg, surpassing all previous benchmarks and exciting traders.
Gold, on the other hand, faced headwinds from a resurgent dollar index and profit-taking after a strong run. MCX gold futures slipped 0.4% to ₹75,150 for 10 grams. International spot prices mirrored this trend, dropping to $2,648/oz.
What’s fueling silver’s dominance? Experts attribute it to tightening supply amid booming demand from renewable energy sectors, electric vehicles, and 5G infrastructure. ETF inflows into silver funds hit multi-month highs, adding rocket fuel to the rally.
For gold, the pullback appears technical rather than fundamental. Central banks added over 1,000 tonnes to reserves this year, and de-dollarization trends in emerging markets provide solid support. Upcoming policy meetings from major central banks will be pivotal.
Market participants note that silver’s outperformance creates arbitrage opportunities, potentially drawing more capital into the sector. With inflation stubbornly above targets in many economies, both metals retain strong appeal as portfolio diversifiers.
As the trading session wrapped up, focus shifts to macroeconomic indicators that could dictate the next moves in this volatile market.
