Bullion rally: Silver prices hit fresh Rs 1.20 lakh/kg peak; gold gains Rs 500 amid US tariffs

Silver prices soared Rs 2,000 to a record Rs 1,20,000 per kilogram in the national capital on Wednesday, extending a sharp rally that had lifted the white metal by Rs 3,000 to Rs 1,18,000 just a day earlier, according to the All India Sarafa Association.Gold also gained ground, with 99.9 per cent purity climbing Rs 500 to Rs 1,01,270 per 10 grams (inclusive of all taxes). The 99.5 per cent variety rose Rs 400 to Rs 1,00,800 per 10 grams, against the previous close of Rs 1,00,400, PTI reported.Analysts attributed the uptrend to global uncertainty triggered by President Donald Trump’s move to dismiss Federal Reserve Governor Lisa Cook. “Gold and silver are continuing their upward trajectory amid increased political unpredictability following President Donald Trump’s dismissal of Federal Reserve Governor Lisa Cook,” said Renisha Chainani, Head – Research at Augmont.

The action, she added, has deepened concerns over the Fed’s independence and its ability to frame policy free from political pressure.In global markets, spot gold was down 0.55 per cent at $3,375.08 per ounce in New York, while silver slipped 1 per cent to $38.23 per ounce. Market experts said bullion had surged earlier in the week after Trump ordered Cook’s removal over alleged mortgage fraud, sending the dollar tumbling. But as Cook contested the legality of the move and the greenback recovered, gold prices moderated overseas.Trump has previously threatened to fire Fed Chair Jerome Powell for not cutting interest rates, a stance that continues to keep traders wary.