Silver crosses 4 lakh mark, gold also 'uncontrollable': Why prices are soaring so high?

Both gold and silver, the precious metals, have set such high inflation records that all previous records have been shattered in one go. Silver prices have made history by crossing the ₹4 lakh mark, while the shine of gold is also becoming out of reach for the average buyer. This historic surge in the market has forced everyone to wonder where these prices will stop.

Entire game changed in 24 hours

The speed at which silver has jumped is nothing short of a surprise even for market experts. On MCX, the price of silver reached ₹4,07,456 per kilogram. In the Delhi bullion market, silver also recorded its 'all-time high' price. It is noteworthy that silver needed only ₹15,000 to touch the magical figure of ₹4 lakh, which it achieved within just 24 hours. This surge did not happen suddenly. Last Tuesday, a massive jump of ₹40,500 was seen in silver prices. The very next day, on Wednesday, prices increased by another ₹15,000.

Gold is not far behind

Not only silver, but gold prices are also skyrocketing. The shine of the yellow metal is now dazzling. On MCX, the price of gold has reached ₹1,75,869 per 10 grams, which is a new record in itself. Looking at market data, on Wednesday, 99.9% pure gold closed at a new high of ₹1,71,000 per 10 grams, registering a massive increase of ₹5,000.

Why are prices spiraling out of control?

There isn't just one reason behind this 'tsunami' in prices. Market experts have primarily attributed it to three international factors.

Weakness of the dollar: The sharp decline in the US dollar has given wings to gold and silver prices. Recent comments by US President Donald Trump have indicated that he favors a weaker dollar. Whenever the dollar weakens, the prices of gold and silver rise in the international market because investors' confidence shifts from currency to precious metals.

The dynamics of interest rates: The market is also keeping a close eye on the policies of the US Federal Reserve. Although interest rates are expected to remain stable for now, the possibility of future rate cuts has further fueled the demand for gold and silver.

Summary

In the stock market, silver has crossed the historic level of ₹4 lakh per kilogram, while gold has also reached a new peak of ₹1.75 lakh per 10 grams. This rapid surge in silver prices, driven by the weakening dollar and global tensions, has left those planning wedding purchases stunned