Mumbai: Global precious metals markets saw an extraordinary rally on Friday, with silver crossing the 75 dollar per ounce mark for the first time, while gold and platinum surged to fresh record highs. The sharp rise reflects strong investor demand, tight supply conditions and growing expectations of interest rate cuts in the United States.
Silver led the rally, gaining strongly in thin year end trading. Analysts said the metal has benefited from rising industrial demand, especially from clean energy and technology sectors, along with its growing appeal as a store of value during uncertain global conditions. Silver prices have more than doubled this year, marking one of the strongest annual performances in decades.
Gold also extended its record breaking run, climbing above 4,500 dollars per ounce. Investors continue to move money into gold as a safe haven amid geopolitical tensions, a weaker US dollar and hopes that borrowing costs will fall further in the coming months. Market experts noted that gold is heading for one of its best yearly gains since the late 1970s.
Platinum prices jumped to all time highs as well, supported by supply shortages and steady demand from the automobile sector. Reduced mine output and limited availability have tightened the market, pushing prices sharply higher in recent weeks.
In India, the global surge was reflected in domestic markets. Gold prices rose to around 1.39 lakh rupees per 10 grams, while silver climbed above 2.3 lakh rupees per kilogram in major trading centres. However, jewellers said retail demand has slowed as buyers hold back due to the high prices, even as investor interest remains strong.
Market participants said the rally has also been fuelled by expectations that the US central bank could cut interest rates further next year, making non interest bearing assets like gold and silver more attractive. A softer dollar and low liquidity during the holiday season added to the sharp price movements.
Looking ahead, analysts remain cautiously optimistic. While some see room for further gains if current conditions persist, others warn that any sudden strengthening of the dollar or change in interest rate expectations could trigger price corrections.
For now, precious metals remain firmly in focus, closing the year on a strong note and underscoring their role as both industrial essentials and trusted safe haven assets.