Silver jumps over Rs 2 lakh per kg on MCX for first time, gold hits record high — what’s driving the rally in precious metals?

Silver Price Today: Silver and gold staged a late-session surge on Friday, December 12, sending prices to record levels on the Multi-Commodity Exchange (MCX). Silver’s sudden jump past Rs 2 lakh per kilogram caught many by surprise, while gold also climbed above Rs 1.34 lakh per 10 grams.

The March silver contract spiked to Rs 2,01,388 per kg, rising Rs 1,420 during the session with heavy trading activity in more than 10,000 lots. Market participants attributed the rally to tight supplies, strong industrial demand, and growing investor interest, saying the late surge reflected a rush of buying after a mostly quiet morning.

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Gold February futures saw similar momentum, jumping to Rs 1,35,199 per 10 grams, an increase of Rs 2,251. Later in the afternoon, contracts were quoted at Rs 1,34,699, rising 1.68 per cent. Analysts said buying in gold ETFs, central bank purchases, and expectations of further US Federal Reserve rate cuts had pushed the metal higher. Geopolitical concerns and global economic uncertainty were additional factors that strengthened gold’s safe-haven appeal.

Experts noted silver’s recent inclusion in the US critical minerals list has added strategic demand, while industrial consumption, especially from electronics and solar sectors, continues to underpin the metal.

Domestic spot prices have risen sharply this year. Gold has gained around 70 per cent, while silver has surged roughly 115 per cent. Traders said the metals are likely to remain volatile but stressed that supply shortages and global uncertainties should continue to provide upward support in the near term.