Silver prices hit record high: Will white metal move towards Rs 5 lakh per kg?

Silver prices remained in sharp focus after hitting record highs in domestic and global markets, raising questions over whether the metal could eventually approach the Rs 5 lakh per kg level.

Gold futures traded marginally higher on Friday. The February 5 contract rose Rs 231, or 0.15 per cent, to Rs 1,56,572. During the session, the contract moved between an intraday low of Rs 1,55,248 and a high of Rs 1,59,226, which also marked its 52-week high. The 52-week low for the contract stands at Rs 98,169.

The contract opened at Rs 1,58,889 compared with the previous close of Rs 1,56,341. Trading volume was recorded at 10,09,400 units, while open interest stood at 11,606 lots. MCX gold also crossed the Rs 1,59,000 level for the first time.

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Silver, Global Bullion at Record Levels

Silver prices also touched fresh records. In the global market, silver rose close to $40 an ounce. On the MCX, silver hit a new all-time high of Rs 99,927 per kg. International gold prices remained near record levels, with Comex gold trading around $4,970 an ounce.

In the domestic market, gold prices have already crossed the Rs 1.5 lakh per 10-gram mark. Silver prices have surged by nearly Rs 1 lakh per kg since the beginning of January.

Drivers, Returns and Caution Ahead

Market participants said the rally in gold and silver was driven by rising demand for safe-haven assets. Factors supporting prices include heightened geopolitical tensions, weakness in the US dollar and expectations of interest rate cuts by the US Federal Reserve later this year.

Over the past month, gold prices have gained more than 10 per cent. On a yearly basis, gold has delivered returns of around 80 per cent, while silver has risen by about 200 to 250 per cent.

Experts said silver is also getting support as an industrial metal, with strong demand linked to the energy transition and global supply shortages. Export controls by China and silver being viewed as a critical metal in some countries have also added to the strength.

“Silver has strong momentum due to safe-haven demand, industrial consumption and tight global supply, but whether prices can move towards Rs 5 lakh per kg will depend on how long the current global uncertainties, dollar weakness and investment demand continue,” market experts told Zee Business.

However, experts cautioned that gold and silver prices could be risky at current elevated levels. They said investors with existing positions should remain cautious, while fresh buying should be considered only after assessing the risks.