Silver crosses Rs 1.85 lakh on MCX for the first time; gold surges past Rs 1.28 lakh

Precious metals staged a sharp rally on Friday, December 5, with silver breaching the Rs 1.85 lakh per kg mark on the Multi Commodity Exchange (MCX) for the first time, while gold climbed above Rs 1.28 lakh per 10 grams, driven by firm global cues and heightened expectations around the US Federal Reserve’s upcoming policy decision. The spike brought renewed momentum into bullion markets after nearly a week of muted movement, as both domestic and international prices strengthened in tandem.

Silver hits all-time high on MCX

Silver extended its upward sweep through the morning session and touched a fresh record of Rs 1,85,234 per kg, marking its strongest print ever in the domestic derivatives market. The speed of the rise was notable, with MCX silver futures for March delivery gaining close to 1.7 per cent, settling around Rs 1,81,189 by afternoon trade.

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Traders attributed the jump to a combination of robust industrial demand, particularly from the electric-vehicle and solar segments, and continued weakness in the rupee, which inflated import costs. Market participants noted that the recent surge in global silver prices on COMEX — where the metal strengthened to USD 58.47 per ounce — further amplified the domestic rally.

Gold reclaims momentum as global uncertainty rises

Gold prices also regained strength, with benchmark 24-carat rates again moving past Rs 1.28 lakh per 10 grams. India Bullion and Jewellers Association (IBJA) data showed 24-carat gold at Rs 1,28,592, an increase of nearly Rs 750 within a day. Gains were visible across categories: 22-carat and 18-carat gold rose by Rs 684 and Rs 560 respectively.

On the MCX, February gold futures rose nearly 0.4 per cent to Rs 1,30,578, reflecting buying interest ahead of the Federal Reserve decision on 10 December. Globally, COMEX gold strengthened to USD 4,257 per ounce, supported by persistent geopolitical tensions and weak macroeconomic signals from major economies.

Why bullion is rallying again?

The renewed uptrend in both metals comes at a time when global investors are navigating uncertainties over interest-rate direction, inflationary pressures and the broader economic outlook. Expectations that the Federal Reserve may soon pivot towards lower rates have pushed demand towards safe-haven assets, lifting both gold and silver.

Analysts said domestic bullion markets were also influenced by currency movements, as the rupee’s recent softness against the dollar made imports costlier, a factor that tends to support local metal prices.

Industrial demand keeps silver in focus

While gold remains the traditional safe-haven investment, silver has been benefiting from a more structural shift. Its growing use in clean-energy technologies — from photovoltaic cells in solar panels to high-density connectors in electric vehicles — has pushed demand higher globally.