Silver Futures Hit Record High of ₹1.78 Lakh/Kg on Weak Dollar, Fed Rate Cut Hopes

Silver futures surged by ₹3,668 to a fresh record high of ₹1,78,649 per kilogram while gold prices climbed to ₹1,30,550 per 10 grams in the domestic markets on Monday, driven by a weak US dollar and growing expectations of an interest rate cut by the US Federal Reserve.

On the Multi Commodity Exchange (MCX), the yellow metal futures for February 2026 contract jumped by ₹1,046, or 0.81%, to ₹1,30,550 per 10 grams in 12,199 lots.

Silver futures for March 2026 delivery extended the gains for the seventh straight session, by soaring ₹3,668, or 2.09% to hit a lifetime high of ₹1,78,649 per kilogram in a business turnover of 15,750 lots.

The white metal has skyrocketed by ₹21,245, or 13.5%, over the past seven sessions, from ₹1,57,404 per kilogram on November 20.

"Gold heads for fifth straight monthly gain and silver hits fresh record high amid Federal Reserve rate cut expectations and profit taking in the dollar index," said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was quoting 0.03% lower at 99.43, lending support to gold prices in the international markets.

On the global front, Comex gold futures for December delivery extended their winning streak for the sixth consecutive session, by rising $35.2, or 0.83%, to $4,253.5 per ounce — marking their highest level in six weeks.

"Gold prices are rising amid growing calls for another interest rate cut by the US Federal Reserve as early as next week. Market participants are now pricing in an 87% probability that the Fed will cut by 25 basis points (bps) at its December policy meeting," an expert said.

Comex silver futures for December contract also gained for the fifth straight day, jumping by $1.3, or 2.4%, to hit a fresh high of $57.80 an ounce in the overseas trade.

Rahul Kalantri added that the technical charts for silver have turned "more bullish" in the past week, attracting chart-based speculators to the long side of the market.

"Safe-haven buying also emerged for precious metals after trading was halted in the CME due to overheating in its data center," he said.

Meanwhile, the rupee's recent weakness against the US dollar has also provided support to bullion prices in domestic markets, though optimism around a Russia- Ukraine peace deal capped further gains, Kalantri noted.

According to commodities market experts, investors are awaiting a slew of macroeconomic data releases in the US, including the ISM Manufacturing PMI for November later in the day, which could provide fresh cues about the health of the economy and short-term direction for bullion prices.

Market participants will also watch for comments from the US Federal Reserve Chair, Jerome Powell, who is scheduled to speak at a panel discussion in Stanford on Monday, ahead of the year's final monetary policy decision.

Later in the week, traders will turn their attention to key US economic indicators such as ADP employment change, unemployment claims and delayed Personal Consumption Expenditures (PCE) Index report, a key inflation gauge for the US central bank, they said.