Silver rates surge to near ₹2 lakh per kg in India, ETFs see record inflows

Silver prices rose to an all-time high in India on Wednesday on strong investor demand and expectations of an interest rate cut by the US Federal Reserve.

India is the biggest market for silver globally. (Bloomberg)

Silver futures for March delivery jumped ₹3,736/kg, or 1.98%, to ₹1,91,800/kg on the Multi Commodity Exchange. The white metal had soared by ₹6,923/kg, or 3.80%, to ₹1,88,665 per kg in the previous session on supply constraints.

Gold futures for February delivery rose by ₹173, or 0.13%, to ₹1,30,280 per 10 grams. Global central banks continue to be net buyers of gold, with China increasing its reserves for the 13th consecutive month to about 74.12 million troy ounces.

“The market is anticipating a US Fed rate cut later in the day, as well as firmer signals on policy direction through 2026,” Renisha Chainani, head of research at Augmont, told PTI. However, US Federal Reserve Chair Jerome Powell may just strike a cautious tone on future policy easing amid persistent inflation concerns, she said.

After some minor pullbacks, the silver bulls are back in form, said Manav Modi, commodities analyst (precious metals) at Motilal Oswal Financial Services Ltd. “Prices are supported by persistently low supply and dwindling inventory, as well as its (silver's) recent addition to the US critical minerals list.”