Silver Hits Record High on MCX as Industrial Demand Surges; Gold Slips Ahead of Fed Decision

New Delhi Silver prices continued their remarkable rally on Wednesday, reaching new all-time highs on the Multi Commodity Exchange (MCX), buoyed by robust industrial demand and favorable market sentiment.

July silver futures touched a record-breaking Rs 1,09,748 per kilogram, surpassing the previous day’s high. September contracts climbed even further, hitting Rs 1,11,000 per kilogram. With these gains, silver is now trading approximately 25% above its all-time low of Rs 88,050 per kg, signaling strong momentum in the white metal.

Market analysts attribute the surge to improving industrial demand, particularly from sectors such as electronics and green energy, as well as investor interest amid economic uncertainty. They recommend considering silver as a medium-term tactical investment, noting that supportive fundamentals are likely to keep the uptrend intact.

In contrast, gold prices softened for the second consecutive session. August gold futures dipped by 0.2%, trading around Rs 99,329 per 10 grams. This pullback comes shortly after gold breached the Rs 1 lakh mark on MCX for the first time in history.

The divergence between gold and silver has pushed the gold-silver ratio down to approximately 91, a significant drop from over 100 recorded during April and May. This ratio, which reflects how many ounces of silver are needed to buy one ounce of gold, is closely monitored by traders to assess relative metal strength.

Analysts suggest gold is currently in a holding pattern as investors await the U.S. Federal Reserve’s interest rate decision, expected later on Wednesday. The outcome could influence gold prices globally, depending on the Fed’s stance on inflation and rate cuts.

Jateen Trivedi, VP at LKP Securities, noted, “Gold is trading in a narrow range ahead of the Fed’s policy announcement, with MCX prices moving between Rs 99,150 and Rs 99,750, and Comex gold around $3,375.”

Tata Mutual Fund remains bullish on gold over the long term, citing persistent central bank buying and monetary policy support as key drivers.

Geopolitical concerns, such as tensions between Iran and Israel and ongoing global trade negotiations, are also keeping market participants cautious.

As silver shines brighter in the short term, investors continue to watch both metals closely amid a dynamic global economic landscape.