Silver prices witnessed a massive jump on Monday. The white metal soared to a record high of ₹2.72 lakh per kg in the Delhi bullion market. This rally comes as the US dollar loses its strength globally. Gold also joined the party and crossed historical benchmarks.
Investors are rushing to safe assets amid growing economic uncertainty. The sudden spike has caught the attention of traders and jewelry buyers alike. Market experts believe this trend signals a major shift in global investment strategies.
Massive Surge in Precious Metal Prices
The start of the week brought shocking numbers for the commodity market. Silver prices jumped by a staggering 6.6 percent in a single trading session. This translates to a rise of ₹17,000 per kg.
Local jewelers reported that silver closed at ₹2.55 lakh per kg on Friday. However, heavy buying interest pushed the rates to ₹2.72 lakh on Monday. This is one of the sharpest single-day gains seen in recent years.
Gold prices also saw a significant uptick. The yellow metal rose by ₹1,300 to reach ₹1,58,500 per 10 grams. This price applies to 99.9 percent purity gold.
Global markets are driving this domestic surge.
In the overseas market, spot silver rallied by over 2.8 percent to hit $80.21 per ounce. Gold crossed a major psychological barrier. It traded 1 percent higher at $5,012.94 per ounce.
Here is a quick look at the price changes:
| Metal | Previous Close | Monday Price | Increase |
|---|---|---|---|
| Silver (1 kg) | ₹2,55,000 | ₹2,72,000 | ₹17,000 (+6.6%) |
| Gold (10g) | ₹1,57,200 | ₹1,58,500 | ₹1,300 (+0.83%) |
Why the Dollar Is Losing Its Power
The primary driver behind this rally is the weakening US dollar. The dollar index has dropped to the 97 level. This index measures the greenback against a basket of six major currencies.
When the dollar falls, commodities priced in dollars become cheaper for holders of other currencies. This usually leads to increased demand.
“Gold traded higher on Monday, supported by a pullback in the US dollar and bargain buying,” a commodity analyst noted.
The dollar is currently trading lower by almost 0.30 percent. This dip has provided strong support to bullion prices. Traders are taking advantage of the lower dollar to accumulate positions in precious metals.
Geopolitical Tension Fuels Safe Haven Demand
Economic factors are not the only reason for this surge. Political uncertainty is playing a massive role. Investors are nervous about the current geopolitical landscape.
President Donald Trump has recently made several unpredictable statements. His comments regarding tariffs and international relations are causing jitters in the market.
Uncertainty always drives investors toward gold and silver.
These metals are considered “safe havens” during turbulent times. When traders fear that stock markets or currencies might crash, they buy gold. It acts as a shield against inflation and political instability.
- Tariff threats are disrupting trade expectations.
- Global macro uncertainty is at an all-time high.
- Traders are looking for stability outside of fiat currencies.
The combination of a weak dollar and political fear has created a perfect storm for metal prices.
Outlook for Buyers and Investors
The current market volatility suggests that prices may remain high. Buyers waiting for a dip might be disappointed in the short term. The momentum is clearly in favor of the bulls.
Experts suggest that silver is outperforming gold in percentage terms. This is because silver is also an industrial metal. Its demand is driven by both investment needs and industrial usage.
If the dollar continues to stay below the 97 mark, we could see further highs. However, any positive news regarding the US economy could reverse this trend. Investors should watch the currency charts closely.
The metals have recovered sharply after the swings seen last week. This indicates that the market has absorbed the selling pressure and is ready for the next leg up.
The precious metals market has shown incredible strength this week. Silver leading the charge with a 6 percent rise is a historic event. A weak dollar and tense geopolitical climate are the main fuels for this fire. Investors should remain cautious but the trend currently points upward.
We want to hear from you. Do you think silver will cross the ₹3 lakh mark soon? Share your thoughts in the comments below. If you are tracking this rally, share this article with your friends using #SilverSurge on social media.
