Why did silver prices reach an all-time high recently?

Silver prices hit a record high due to strong global demand, geopolitical uncertainty, and a recent interest rate cut by the US Federal Reserve.

What was the US Federal Reserve's latest decision on interest rates?

The US Federal Reserve cut interest rates by 25 basis points, marking its third reduction this year, with a cautious outlook for future easing.

How has silver performed this year compared to gold?

Silver has significantly outperformed gold this year, with prices more than doubling, driven by industrial demand and safe-haven appeal.

Home / Business and Economy / Silver Hits Record High Amid Fed Rate Cut

Silver Hits Record High Amid Fed Rate Cut

11 Dec, 2025

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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 Hits Record High Amid Fed Rate Cut

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.