Silver surges ₹2,000 to hit fresh peak of ₹1.20 lakh per kg; gold up ₹500

Silver prices surged by ₹2,000 to hit a fresh peak of ₹1,20,000 per kilogram in the national capital on Wednesday, as traders flocked to safe-haven assets after the steep US tariff on Indian products came into effect.

According to the All India Sarafa Association, the white metal had rallied ₹3,000 to ₹1,18,000 per kg on Tuesday.

In the national capital, gold of 99.9 per cent purity climbed by ₹500 to ₹1,01,270 per 10 grams (inclusive of all taxes) on Wednesday. The precious metal had settled at ₹1,00,770 per 10 grams in the previous market close.

Additionally, the yellow metal of 99.5 per cent purity appreciated by ₹400 to ₹1,00,800 per 10 grams (inclusive of all taxes) on Wednesday.

 

It had finished at ₹1,00,400 per 10 grams on Tuesday.

"Gold and silver are continuing their upward trajectory amid increased political unpredictability following President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook," Renisha Chainani, Head - Research at Augmont, said.

The action has increased doubts about the Fed's independence and capacity to set monetary policy without interference from politics, Chainani added.

Globally, spot gold is trading 0.55 per cent lower at $3,375.08 per ounce in New York.

According to the commodities market experts, the yellow metal had rallied on Monday after Trump's announcement that Fed Governor Lisa Cook be removed from her post immediately over allegations of mortgage fraud.

The dollar tumbled after Trump's move, also benefiting bullion prices in the overseas markets. Later, the greenback recouped its losses and weighed on the precious metal as Cook argued that Trump had no authority for the firing, they added.

Earlier this year, President Trump had also threatened to fire Fed Chair Jerome Powell, whom he has repeatedly criticised for not cutting interest rates.

Spot silver also slipped 1 per cent to trade at $38.23 per ounce.