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Silver Hits Record High Amid Fed Rate Cut
11 Dec
Summary
- Silver prices reached an all-time high of Rs 1,93,720 per kg.
- US Federal Reserve implemented a 25 basis point interest rate cut.
- Geopolitical uncertainty and industrial demand boost silver's appeal.
Silver prices have achieved a new all-time high, reaching Rs 1,93,720 per kilogram in futures trade. This record-breaking run, now in its third consecutive day, has seen silver prices surge by over 6.6% in the past three sessions. The significant appreciation is attributed to strong global trends and a recent interest rate cut by the US Federal Reserve.
The US Federal Reserve announced a 25 basis point reduction in interest rates, its third such cut this year, while signaling a cautious approach to future easing. Despite this, market participants are digesting the decision, which has supported a rise in precious metal prices. Gold futures also experienced an appreciation, trading steadily on the Multi-Commodity Exchange.
Beyond the Fed's actions, several factors contribute to silver's impressive performance. Geopolitical uncertainties, including international shipping incidents and ongoing conflict concerns, enhance silver's safe-haven appeal. Simultaneously, robust industrial demand from sectors like solar energy, electric vehicles, and electronics, coupled with tightening global supply, has driven prices sharply higher.
