Silver prices in the domestic market are at lifetime highs amid multiple catalysts like safe-haven demand due to escalating geopolitical tensions, hopes of US interest rate cuts, speculative buying, and a sharp rally in industrial metals. Historically, silver and gold, both considered precious metals, are often influenced by similar market conditions. Due to this similarity, both can exhibit similar price movements, with silver prices often following the trends of gold prices.
Gold prices edged up on Tuesday, hovering slightly below a record high as investors awaited the U.S. Federal Reserve’s policy meeting minutes and key inflation data for cues on the timing and depth of interest rate cuts. Spot gold was up 0.1% at $2,340.09 per ounce as of 0051 GMT, after hitting a record high of $2,353.79 on Monday. The U.S. CPI data and the minutes of the Fed’s March policy meeting are due on Wednesday, which could help gauge the timing of the widely-expected rate cuts.
Indian benchmark indices, Sensex and Nifty, opened flat on Wednesday, mirroring global stocks’ decline triggered by fresh U.S. data hinting at a possible delay in Federal Reserve interest rate cuts. The BSE Sensex dropped 285.91 points to 73,618, while the NSE Nifty fell 89.60 points to 22,363.70 in early trade.
