Silver surges Rs 1,800 to hit all-time high; gold jumps Rs 650

NEW DELHI, May 16 : Silver soared by Rs 1,800 to hit a fresh record high of Rs 88,000 per kg on Thursday, while gold prices jumped Rs 650 to Rs 74,050 per 10 grams in line with strong global trends.

  According to HDFC Securities, rising for the second straight session, silver prices surged Rs 1,800 to hit its lifetime high of Rs 88,700 per kg in Delhi. It had closed at Rs 86,900 per kg in the previous session.

Meanwhile, the precious metal price jumped from Rs 650 to Rs 74,050 per 10 grams. In the previous session, it had closed at Rs 73,400 per 10 grams.

“Bullion rose on Thursday as yesterday’s lower US inflation figures raised the prospect of interest rate cuts as early as September. In April, the underlying US inflation rate fell for the first time in six months.

“Following the data release, the US dollar index slipped to a fifth-week low, and US Treasury yields declined, which is also positive for the precious metal,” Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said.

In the international markets, spot gold at Comex was trading at USD 2,386 per ounce, up by USD 21 from the previous close.

“Gold prices maintain a positive stance overall, some minor profit booking may occur from higher levels, especially as buying driven by the anticipated consumer price index (CPI) event appears to have been priced in,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.

Silver was also quoted higher at USD 29.55 per ounce. In the previous session, it had settled at USD 28.80 per ounce.

“The swift rise in silver prices is primarily due to its unique industrial properties, which set it apart from gold. Key industrial metals like copper, aluminium, zinc, and lead prices have risen sharply since April on worries over supply threat.

“This has prompted speculators to bet largely on silver. In addition, record high gold prices, escalating geopolitical tensions and hopes of US interest rate cuts also aided the sentiments,” Hareesh V, Head of Commodities at Geojit Financial Services, said. (PTI)