Silver Surges to Record High Amid Global Supply Constraints

Silver prices experienced a dramatic surge in the national capital, rising by Rs 8,500 to reach an unprecedented Rs 1,71,500 per kilogram on Friday. This sharp increase was fueled by persistent safe-haven inflows and severe supply constraints in global markets, according to the All India Sarafa Association.

Despite this bullish trend, gold prices saw a decline. The yellow metal of 99.9% and 99.5% purity fell by Rs 600 to Rs 1,26,000 and Rs 1,25,400 per 10 grams, respectively. This decline follows the metal's record high on Thursday.

Analysts point to the Federal Reserve's dovish monetary signals and ongoing geopolitical tensions as factors underpinning silver's rise. Manav Modi of Motilal Oswal Financial Services highlighted the supply tightness and market volatility as crucial elements contributing to the disparity between silver ETF and futures prices.

(With inputs from agencies.)