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Silver Surges on Geopolitical Fears & Fed Speculation
20 Feb
Summary
- Silver prices rallied ₹4,357 to ₹2.45 lakh per kg on Friday.
- Global tensions, including US-Iran relations, fueled the surge.
- Investors await US PCE data for Fed rate cut clues.
Silver prices saw a substantial increase on Friday, rallying ₹4,357 to settle at ₹2.45 lakh per kilogram in futures trading.
The surge in the white metal's value was attributed to firm global market trends, significantly influenced by rising geopolitical tensions between the United States and Iran. Market experts noted that traders are factoring in these geopolitical risks alongside the Federal Reserve's monetary policy outlook.
Investors are now keenly awaiting the release of the US Personal Consumption Expenditures (PCE) price index data later on Friday. This economic indicator is expected to provide crucial cues regarding the Federal Reserve's next policy move, potentially impacting the near-term direction for precious metals.
Meanwhile, Federal Reserve Governor Stephen Miran indicated that stronger-than-expected economic data might lead to a delay in interest rate cuts. This comes as minutes from the January Federal Open Market Committee meeting revealed a divided opinion among policymakers regarding the future path of interest rates. Physical demand for silver in Asia remains seasonally subdued due to the ongoing Lunar New Year festivities.
