Silver surges Rs 6,000 to record Rs 1.63 lakh/kg in Delhi; breaches USD 50/ounce in global markets

New Delhi: Silver prices surged by Rs 6,000 to hit a fresh record of Rs 1,63,000 per kg in the national capital on Thursday as the white metal touched the USD 50 per ounce level for the first time in the overseas markets.

Analysts said robust industrial demand, geopolitical, economic uncertainties and growing expectations of interest rate cuts by the US Federal Reserve have spurred the demand for the white metal.

The white metal saw such a steep surge for the second time in a week. It climbed Rs 7,400 to close at Rs 1,57,400 per kg on October 6.

According to the All India Sarafa Association, silver had closed at Rs 1,57,000 per kg on Wednesday.

In the local bullion market, gold of 99.9 per cent and 99.5 per cent purity stayed unchanged at their all-time high levels of Rs 1,26,600 per 10 grams and Rs 1,26,000 per 10 grams (inclusive of all taxes), respectively, on Thursday.

Globally, spot gold was trading marginally lower at USD 4,039.26 per ounce.

Silver rose more than 2 per cent to breach the crucial USD 50 per ounce mark in the spot markets for the first time.

"Silver rose to hit record highs as heightened political and economic uncertainties and bets on US rate cuts drove safe-haven demand," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Investors continued to weigh the effects of the ongoing US government shutdown, which has clouded the economic outlook and delayed key data releases crucial for Fed policy decisions.

Rajkumar Subramanian, Head - Product & Family Office, PL Wealth said, "Silver's surge past toward the psychologically critical USD 50 per ounce-threshold marks a defining moment for precious metals markets."

Unlike the speculative excesses that characterised the 2011 peak, the white metal's Thursday rally is underpinned by fundamental structural imbalances – persistent supply deficits and accelerating industrial demand from solar, EV, and 5G sectors.

"With the white metal delivering 72 per cent returns year-to-date compared to gold's 54 per cent, we're witnessing silver's unique dual identity as both monetary hedge and industrial necessity driving prices toward levels not sustained since 1980.

"The convergence of geopolitical uncertainty, monetary accommodation, and supply constraints creates a compelling case for sustained strength beyond the USD 50 milestone," Subramanian said.

The latest Federal Open Market Committee Meeting (FOMC) minutes showed officials acknowledging rising risks to the labour market that could justify a rate cut, though concerns over inflation persisted, Trivedi said.

Meanwhile, markets faced renewed political turbulence in France and leadership changes in Japan. Additionally, tight physical market also underpinned silver prices, supported by strong industrial demand from the solar and electronics sectors, with the Silver Institute projecting a global supply deficit for the fifth consecutive year in 2025, he added.