Silver prices hiked Rs 2,000 to touch a new high of Rs 1,20,000 per kilogram in New Delhi on Wednesday, as investors shifted to safe-haven assets following the imposition of US tariffs on Indian products that came into effect.
The latest rally follows Tuesday’s sharp gain when the white metal had jumped by Rs 3,000 to settle at Rs 1,18,000 per kilogram. The momentum in silver reflects heightened investor demand amid both geopolitical and economic uncertainty.
Gold also witnessed an uptick in domestic markets. In Delhi, gold of 99.9 per cent purity advanced by ₹500 to ₹1,01,270 per 10 grams (inclusive of all taxes). This compares with Tuesday’s closing level of ₹1,00,770 per 10 grams. The yellow metal of 99.5 per cent purity rose by ₹400 to ₹1,00,800 per 10 grams, up from ₹1,00,400 in the previous session.
Analysts attribute the sharp climb in bullion prices to growing concerns over political interference in the US central bank. “Gold and silver are continuing their upward trajectory amid increased political unpredictability following President Donald Trump’s dismissal of Federal Reserve Governor Lisa Cook,” said Renisha Chainani, Head – Research at Augmont.
Chainani noted that the decision has “increased doubts about the Fed’s independence and capacity to set monetary policy without interference from politics.”
Globally, however, the trend was mixed. Spot gold in New York was trading 0.55 per cent lower at USD 3,375.08 per ounce. Silver too slipped 1 per cent to USD 38.23 per ounce as the dollar regained some strength after an initial tumble.
Market experts explained that bullion had rallied earlier this week after Trump’s sudden announcement to remove Fed Governor Lisa Cook over alleged mortgage fraud. The move triggered a sharp drop in the dollar, which temporarily boosted precious metals. However, Cook’s firm rebuttal — arguing that the president had no authority to fire her — helped steady the greenback, in turn weighing on global bullion prices.
The episode adds to a series of clashes between the White House and the Federal Reserve. Earlier this year, Trump had openly threatened to dismiss Fed Chair Jerome Powell, repeatedly criticising him for not cutting interest rates fast enough. Such political turbulence has added a layer of uncertainty in global financial markets, prompting investors to seek refuge in assets like gold and silver.
In India, this global backdrop combined with new trade tensions has provided strong support for bullion. The US tariffs on Indian goods, which came into effect recently, have heightened concerns about export prospects and currency stability, further driving demand for precious metals as a store of value.
With both gold and silver on an upward trajectory, traders expect volatility to continue in the near term, influenced by political developments in the US, central bank decisions, and global trade dynamics.
For now, silver’s record at Rs 1.20 lakh per kilogram and gold’s steady climb above the Rs 1 lakh mark underline the strength of investor demand for safe-haven assets amid a turbulent economic and political landscape.
