Silver futures surge Rs 2,597 per kg to breach Rs 1.24 lakh-mark in futures trade

New Delhi, Sep 1 (PTI) Silver prices on Monday skyrocketed by Rs 2,597 to zoom past the crucial Rs 1.24 lakh mark for a kilogram in futures trade in line with strong trends in the international markets.

The white metal for the December contract rallied Rs 2,597 or 2.13 per cent to hit a record high of Rs 1,24,470 per kg in the early trade.

"Silver prices surged in the domestic markets after the US administration implemented higher tariffs on Indian products, prompting investors to seek refuge in safe-haven assets.

"The Indian rupee weakened significantly against the dollar, hitting an all-time low, which further drove up local bullion prices," Rahul Kalantri, Vice-President of Commodities, Mehta Equities, said.

According to Manav Modi, Analyst, Precious Metal -Research, Motilal Oswal Financial Services said, "Silver booked records on domestic front and touched a record high since 2011 in COMEX on the back of safe haven buying." In the overseas market, Comex silver futures for the December contract breached the USD 41 per ounce, its highest level in 14 years, in New York.

"Continued weakness in the US Dollar also lending support to the silver prices," said Aksha Kamboj, Vice President - India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures.

On the economic front, several key jobs reports, including non-farm payrolls data due to be released on Friday, will play a crucial role in shaping expectations around a potential interest rate cut by the Federal Reserve in the September policy meeting, Kamboj added. PTI HG DR DR