Silver at new high of Rs 74,350/kg; gold above Rs 55,000/10 gm

Futures contracts of silver on the Multi-Commodity Exchange (MCX) rose to record levels on Thursday on the back of fresh demand and supply constraints.

The September contract of silver has touched an all-time high of Rs 74,350 per kilogram, breaking the previous record of Rs 73,600.

Currently, it’s trading at Rs 74,032.00 per kg, higher by Rs 2,139.00 or 2.98 per cent from its previous close.

According to market experts, industrial and investment demand have picked up of late for silver. Further global supply constraints have been a major factor for the recent surge.

Peru, the world’s second-largest silver producer, saw its mine supply fall by one-third due to the Covid-induced lockdowns.

Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said that silver futures may reach the levels of Rs 76,000-78,000 by mid-August.

Gold futures also surged to near record levels at Rs 55,540 per 10 gram on the back of the continued uncertainty.

Gupta said that domestic futures of the yellow metal may touch Rs 56,500 in the short-term, by mid-August.

Apart from the investment demand, heavy inflow into gold-back Exchange Traded Funds, rise in the international spot prices also supported the domestic futures, analysts said.