Silver Futures Hit Lifetime High of ₹1,29,720/kg on Fed Rate Cut Bet

Silver prices jumped Rs 291 to hit a lifetime high of Rs 1,29,720 per kilogram in the domestic futures market on Tuesday, buoyed by expectations of a US Federal Reserve rate cut and growing belief that the easing cycle may continue into next year.

On the Multi Commodity Exchange, silver futures for December delivery rallied Rs 291 or 0.22 per cent to touch a record high of Rs 1,29,720 per kg. The March next year delivery also advanced Rs 270 or 0.20 per cent to hit a fresh peak of Rs 1,31,135 per kg.

"Silver prices climbed to touch an all-time high in the domestic markets, supported by safe-haven demand, geopolitical concerns, and firm investment interest," said Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.

In the international market, silver futures for December delivery were trading 0.32 per cent higher at USD 43.09 per ounce, marking a fresh 14-year high in global trade.

Analysts said investors were focused on the Fed's upcoming policy decision for guidance on the pace and extent of future rate cuts.

"Traders will closely monitor the US Federal Reserve's quarterly summary of economic projections, the dot plot, and Fed Chair Jerome Powell's press conference for clues about future policy direction. The meeting occurs amid challenges such as a legal dispute over Fed leadership and political pressure from US President Donald Trump," Kalantri added.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, "The US macroeconomic data, including retail sales and industrial production, due later in the day, will be scrutinised for further insights into the strength of the economy." Market participants said silver has gained strong traction from investors seeking safe-haven assets in the wake of geopolitical tensions and economic uncertainty, with the precious metal scaling multiple records in both domestic and international markets.