Silver hits fresh peak at Rs 1.41 lakh/kg; gold gains Rs 330 amid festive demand

New Delhi, Sep 26 (PTI) Silver prices surged Rs 1,900 to hit a fresh record high of Rs 1,41,900 per kilogram while gold rose by Rs 330 in the national capital on Friday, driven by heavy demand from stockists and robust festive buying, according to the All India Sarafa Association.

Gold of 99.9 per cent purity advanced Rs 330 to Rs 1,17,700 per 10 grams (inclusive of all taxes), from Rs 1,17,370 per 10 grams on Thursday.

Similarly, gold of 99.5 per cent purity climbed Rs 400 to Rs 1,17,100 per 10 grams, compared to Rs 1,16,700 per 10 grams in the previous market session.

So far this year, gold prices have surged by Rs 38,750 per 10 grams, or 49.08 per cent, from Rs 78,950 per 10 grams on December 31, 2024, underscoring the metal's strong rally amid sustained investor interest and seasonal demand.

"Gold traded with a modest positive bias on Friday, supported by haven buying, while a general risk-off sentiment in broader markets continued to strengthen demand for precious metals.

"Meanwhile, US President Trump announced a new round of tariffs on imported drugs, trucks, and furniture set to take effect on October 1. This announcement renewed trade-related uncertainty and increased demand for safe haven metals," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

Silver, which had closed at Rs 1,40,000 per kilogram in the previous session, extended its record-breaking streak on the back of robust physical demand and strong investor appetite, the association said.

"Silver hit a fresh record high in the domestic market, taking bullish cues from global markets. The white metal rose above USD 45 an ounce for the first time in 14 years, driven by strong inflows into ETFs, high demand, and tighter physical availability, Gandhi said.

On a year-to-date basis, silver prices have skyrocketed by Rs 52,200 per kilogram or 58.19 per cent from Rs 89,700 per kilogram on December 31, 2024.

The white metal's relentless rise has been attributed to the ongoing festival season, increased industrial offtake, and a surge in safe-haven buying amid global uncertainties.

Traders said that despite weak global cues, domestic bullion markets have remained buoyant, supported by steady buying from jewellers, stockists, and retail consumers.

In the international market, both precious metals traded lower. Spot gold slipped 0.12 per cent to USD 3,744.75 per ounce, while silver was down 0.35 per cent at USD 45.03 per ounce.

On the Multi Commodity Exchange (MCX), gold futures for October delivery climbed Rs 391 or 0.35 per cent to Rs 1,13,020 per 10 grams. The December contract of gold futures also rose Rs 198 or 0.17 per cent to Rs 1,14,069 per 10 grams.

Meanwhile, silver futures for December delivery jumped Rs 1,243 or 0.90 per cent to hit an all-time high of Rs 1,38,299 per kilogram. The March 2026 contract of silver futures also touched a lifetime high, soaring Rs 1,225 or 0.88 per cent to Rs 1,39,627 per kilogram on the MCX.

Traders said the recent surge in domestic bullion prices has been largely demand-driven, aided by festive purchases and expectations of further monetary easing globally.

"With central banks continuing to diversify their reserves and the rupee showing signs of weakness, precious metals are likely to remain well supported," they added.

In the overseas market, gold futures for December delivery gained 0.28 per cent to USD 3,781.82 per ounce while silver futures for December delivery rose nearly 2 per cent to hover near a 14-year high of USD 45.93 per ounce.

"Traders will await the Personal Consumption Expenditures (PCE) price index data, the US Federal Reserve's preferred gauge of inflation, which will provide further direction for the monetary policy cues and trajectory for bullion prices.

"Elevated PCE price index may weigh on the metal as it will affect Fed rate cut possibility, though the downside is likely to be limited," Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan, said.

Sandip Raichura, CEO - Retail Broking & Distribution and Director at PL Capital, said: "Given recent rallies, we believe gold may head towards USD 4,000 per ounce in the near term as geopolitical risks remain high and festive season demand in India and then China may drive momentum." He added that the yellow metal has multiple drivers that can lead to much higher levels based on data trajectory, which we believe will eventually be towards a weaker dollar and milder than forecast inflation in the Western world. PTI HG HG TRB SHW