Rising for the fifth consecutive session, silver prices on Tuesday climbed Rs 588 to hit a fresh peak of Rs 1,25,249 per kilogram in futures trade, lifted by expectations of a rate cut by the US Federal Reserve this month and robust demand in overseas markets.
On the MCX, the white metal futures for the December contract rallied Rs 588 or 0.47 per cent to hit a record high of Rs 1,25,249 per kg in the morning trade.
"Silver prices have reached historic highs, primarily influenced by growing expectations of an interest rate reduction in the September policy meeting by the US Fed and intensifying geopolitical tensions," said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.
This upward trend is further reinforced by subdued inflation figures, a weakening US Dollar, and mounting speculation regarding imminent cuts in borrowing costs, conditions typically favourable to non-yielding assets such as precious metals, Kalantri added.
On the global front, Comex silver futures for the December contract soared to hit a high of USD 41.99 per ounce in New York.
Kalantri further stated that investors are now awaiting the forthcoming US employment data for additional guidance.
