New Delhi: Silver prices continued their upward trajectory for the sixth consecutive day in Delhi on Friday, climbing ₹3,600 to reach ₹2,92,600 per kilogram. The sharp rise is attributed to sustained buying by stockists, according to the All India Sarafa Association. In contrast, gold prices declined, with 99.9% purity gold falling by ₹1,100 to ₹1,46,200 per 10 grams (including all taxes), down from ₹1,47,300 per 10 grams on the previous trading day.
Despite a softening in global markets, silver remains strong due to rising industrial demand, particularly from electronics, solar panels, and other manufacturing sectors.
Six-Day Silver Surge
The rally marks a 20.16% increase in silver prices, equivalent to a gain of ₹49,100 over just six days. On January 8, silver was priced at ₹2,43,500 per kilogram. Silver has outperformed gold for the second consecutive year, delivering 22.4% returns so far.
Price Movement Over Six Sessions:
| Day | Daily Change | Closing Price (₹/kg) |
|---|---|---|
| Friday | 6,500 | 2,50,000 |
| Monday | 15,000 | 2,65,000 |
| Tuesday | 6,000 | 2,71,000 |
| Wednesday | 15,000 | 2,86,000 |
| Thursday | 3,000 | 2,89,000 |
| Friday | 3,600 | 2,92,600 |
| Total | 49,100 | – |
Global Market Context
Internationally, spot gold and silver experienced a slight decline for the second consecutive day. A stronger U.S. dollar and easing geopolitical tensions in West Asia reduced safe-haven demand, putting downward pressure on prices. Spot gold fell $12.46 (0.27%) to $4,603.51 per ounce, while spot silver declined 2.26% to $90.33 per ounce, after hitting a record $93.57 in the previous session.
Analyst Praveen Singh from Mirae Asset Sharekhan noted, “Gold prices faced pressure after the planned U.S. military action on Iran was postponed. Meanwhile, silver briefly dropped after announcements that U.S. import duties on silver and other critical metals would be avoided.”
Factors Driving Price Movements
Gold and silver prices are influenced by multiple factors, including global economic conditions, geopolitical risks, and the strength of the U.S. dollar. A stronger dollar makes bullion more expensive for buyers using other currencies, reducing demand and putting downward pressure on prices. Conversely, easing tensions may prompt investors to withdraw from safe-haven assets, causing further price corrections.
Industrial Demand Boosts Silver
Rising industrial demand is supporting silver’s rally. Increased consumption in electronics, solar energy, and other industrial sectors has strengthened demand. Stockists’ active buying suggests market expectations of further price gains, which has further pushed silver prices upward.
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