Is Silver Outshining Gold as Prices Soar to Rs 1.11 Lakh per Kg?
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Synopsis
On June 18, silver prices reached a record high of Rs 1.11 lakh per kg, propelled by strong industrial demand, while gold prices slipped. Analysts suggest that investors should consider silver for medium-term investments as market dynamics shift. Discover the latest trends and insights into precious metals.
Key Takeaways
- Silver prices reached a record high of Rs 1.11 lakh per kg.
- Strong industrial demand is a key driver.
- The gold-silver ratio has decreased to around 91.
- Gold prices fell to Rs 99,329 per 10 grams.
- Investors may consider silver for medium-term investments.
New Delhi, June 18 (NationPress) Silver prices have continued their impressive ascent on Wednesday, achieving a remarkable all-time peak on the Multi Commodity Exchange (MCX), bolstered by robust industrial demand and positive market dynamics.
Silver futures set a new record for July expiry, reaching Rs 1,09,748 per kilogram on MCX, surpassing Tuesday's high.
The September futures soared even further, hitting Rs 1,11,000 per kilogram. Consequently, silver is now trading approximately 25% above its historical low of Rs 88,050 per kg.
Experts anticipate that the metal will maintain its strength, particularly due to a resurgence in industrial demand.
They recommend that investors view silver as a viable medium-term tactical investment.
In contrast, gold prices have decreased for the second consecutive session. Gold futures for August delivery slipped 0.2% to around Rs 99,329 per 10 grams.
This decline follows gold's recent milestone of exceeding Rs 1 lakh for the first time on the exchange.
As silver continues its upward trajectory while gold displays signs of weakness, the gold-silver ratio has fallen to around 91, a notable drop from above 100 for much of April and May.
This ratio illustrates how many ounces of silver are needed to purchase one ounce of gold and serves as an indicator of the relative value of these two precious metals.
According to analysts, the gold market is currently adopting a wait-and-see approach in light of the upcoming US Federal Reserve’s interest rate decision on Wednesday.
Other global factors, including escalating tensions between Iran and Israel and ongoing trade negotiations, are also under close scrutiny by investors.
Tata Mutual Fund maintains a positive outlook on gold for the long term, citing persistent central bank purchases and the Fed’s monetary policy as critical support elements.
"Gold prices have remained within a narrow range as investors anticipate the US Federal Reserve’s policy announcement, scheduled for 11:30 PM IST. MCX Gold has fluctuated between Rs 99,150 and Rs 99,750, while Comex gold is around $3,375," stated Jateen Trivedi of LKP Securities.
“The immediate trading range for gold is expected to be between Rs 98,500 and Rs 1,00,500,” he added.
Point of View
It's crucial to emphasize the shifting dynamics in the precious metals market. Silver's impressive rise reflects changing industrial demand, while gold's recent drop indicates investor caution ahead of significant economic decisions. Our commitment is to keep readers informed and equipped to navigate these evolving trends.
NationPress
18/06/2025
Frequently Asked Questions
What is driving the rise in silver prices?
The surge in silver prices is primarily fueled by strong industrial demand and favorable market conditions, resulting in increased investor interest.
How does the gold-silver ratio impact investors?
The gold-silver ratio indicates the relative value of gold to silver, showing how many ounces of silver are needed to purchase one ounce of gold. A lower ratio can signal a buying opportunity in silver.
What should investors do in the current market?
Investors are advised to consider silver as a medium-term tactical investment due to its current upward momentum.
What are the current gold prices?
Gold prices have declined recently, with August futures trading around Rs 99,329 per 10 grams.
What global factors are influencing the precious metals market?
Ongoing trade negotiations, rising tensions between countries, and upcoming decisions from the US Federal Reserve are critical factors affecting the market.
